[Federal Register Volume 60, Number 11 (Wednesday, January 18, 1995)]
[Notices]
[Pages 3657-3658]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-1199]



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DEPARTMENT OF LABOR
Pension and Welfare Benefits Administration
[Prohibited Transaction Exemption 95-01; Exemption Application No. D-
09742, et al.]


Grant of Individual Exemptions; Allied Old English, Inc. 
Employees' Profit Sharing Plan, et al.

AGENCY: Pension and Welfare Benefits Administration, Labor.

ACTION: Grant of Individual Exemptions.

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SUMMARY: This document contains exemptions issued by the Department of 
Labor (the Department) from certain of the prohibited transaction 
restrictions of the Employee Retirement Income Security Act of 1974 
(the Act) and/or the Internal Revenue Code of 1986 (the Code).
    Notices were published in the Federal Register of the pendency 
before the Department of proposals to grant such exemptions. The 
notices set forth a summary of facts and representations contained in 
each application for exemption and referred interested persons to the 
respective applications for a complete statement of the facts and 
representations. The applications have been available for public 
inspection at the Department in Washington, D.C. The notices also 
invited interested persons to submit comments on the requested 
exemptions to the Department. In addition the notices stated that any 
interested person might submit a written request that a public hearing 
be held (where appropriate). The applicants have represented that they 
have complied with the requirements of the notification to interested 
persons. No public comments and no requests for a hearing, unless 
otherwise stated, were received by the Department.
    The notices of proposed exemption were issued and the exemptions 
are being granted solely by the Department because, effective December 
31, 1978, section 102 of Reorganization Plan No. 4 of 1978 (43 FR 
47713, October 17, 1978) transferred the authority of the Secretary of 
the Treasury to issue exemptions of the type proposed to the Secretary 
of Labor.

Statutory Findings

    In accordance with section 408(a) of the Act and/or section 
4975(c)(2) of the Code and the procedures set forth in 29 CFR Part 
2570, Subpart B (55 FR 32836, 32847, August 10, 1990) and based upon 
the entire record, the Department makes the following findings:

    (a) The exemptions are administratively feasible;
    (b) They are in the interests of the plans and their 
participants and beneficiaries; and
    (c) They are protective of the rights of the participants and 
beneficiaries of the plans.

Allied Old English, Inc. Employees' Profit Sharing Plan (the Plan) 
Located in Port Reading, New Jersey

[Prohibited Transaction Exemption 95-01; Application No. D-09742]

Exemption

    The restrictions of sections 406(a), 406(b)(1) and (b)(2) of the 
Act and the sanctions resulting from the application of section 4975 of 
the Code, by reason of section 4975(c)(1) (A) through (E) of the Code, 
shall not apply to the loan (the Loan) of $600,000 by the Plan to the 
Harold Ross Trust, a party in interest with respect to the Plan.
    This exemption is conditioned upon the following requirements: (a) 
The terms of the Loan are at least as favorable to the Plan as those 
obtainable in an arm's length transaction with an unrelated party; (b) 
the Loan does not exceed twenty-five percent of the assets of the Plan 
at any time during the duration of the Loan; (c) the Loan is secured by 
a first deed of trust on certain real property (the Property) which has 
been appraised by an independent, qualified appraiser to ensure that 
the fair market value of the Property is at least 150 percent of the 
amount of the Loan; (d) the fair market value of the Property remains 
at least equal to 150 percent of the outstanding balance of the Loan 
throughout the duration of the Loan; (e) the independent, qualified 
fiduciary determines on behalf of the Plan that the Loan is in the best 
interests of the Plan and protective of the Plan's participants and 
beneficiaries; and (f) the independent, qualified fiduciary monitors 
compliance with the terms of the Loan and conditions of the exemption 
throughout the duration of the transaction, taking any action necessary 
to safeguard the Plan's interest, including foreclosure on the Property 
in the event of default.

EFFECTIVE DATE: This exemption is effective as of December 29, 1994.
    For a more complete statement of the facts and representations 
supporting the Department's decision to grant this exemption, refer to 
the notice of proposed exemption published on November 14, 1994, at 59 
FR 56535.

[[Page 3658]] FOR FURTHER INFORMATION CONTACT: Kathryn Parr of the 
Department, telephone (202) 219-8971. (This is not a toll-free number.)

Wilson Sporting Goods Co. 401(k) Savings Plan (the Plan) Located in 
Chicago, Illinois

[Prohibited Transaction Exemption 95-02; Application No. D-09803]

Exemption

    The restrictions of sections 406(a), 406(b)(1) and (b)(2) of the 
Act and the sanctions resulting from the application of section 4975 of 
the Code, by reason of section 4975(c)(1) (A) through (E) of the Code 
shall not apply to (1) the past interest-free loan to the Plan (the 
Loan) by Wilson Sporting Goods Co. (the Employer), a party in interest 
with respect to the Plan, and (2) the Plan's potential repayment of the 
Loan upon the receipt by the Plan of payments under Guaranteed 
Investment Contract No. CG01314A3A (the GIC) issued by Executive Life 
Insurance Company (Executive Life); provided the following conditions 
are satisfied:
    (A) No interest or expenses are paid by the Plan in connection with 
the transaction;
    (B) The Loan will be repaid only out of amounts paid to the Plan by 
Executive Life, its successors, or any other responsible third party; 
and
    (C) Repayment of the Loan is waived with respect to the amount by 
which the Loan exceeds GIC proceeds.
    For a more complete statement of the facts and representations 
supporting the Department's decision to grant this exemption, refer to 
the notice of proposed exemption published on November 14, 1994 at 59 
FR 56550.

EFFECTIVE DATE: This exemption is effective as of April 1, 1994.

FOR FURTHER INFORMATION CONTACT: Virginia J. Miller of the Department, 
telephone (202) 219-8971. (This is not a toll-free number.)

Erick M. Jansson, IRA (the IRA) Located in Fayetteville, Arkansas

[Prohibited Transaction Exemption 95-03; Exemption Application No. D-
09847]

Exemption

    The sanctions resulting from the application of section 4975 of the 
Code, by reason of section 4975(c)(1) (A) through (E) of the Code, 
shall not apply to the proposed sale of an overriding royalty interest 
in oil and gas (the Interest) by the IRA to Mr. Erick M. Jansson (Mr. 
Jansson), a disqualified person with respect to the IRA, for $95,000 in 
cash, provided:
    (a) The IRA pays no commissions or other expenses in connection 
with the sale;
    (b) The fair market value of the Interest is determined by a 
qualified independent appraiser; and
    (c) The IRA receives no less than the fair market value of the 
Interest on the date of the sale.<SUP>1

    \1\Pursuant to 29 CFR 2510.3-2(d), the IRA is not within the 
jurisdiction of Title I of the Act. However, there is jurisdiction 
under Title II of the Act pursuant to section 4975 of the Code.
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    For a more complete statement of the facts and representations 
supporting the Department's decision to grant this exemption refer to 
the notice of proposed exemption published on December 5, 1994 at 59 FR 
62419.

FOR FURTHER INFORMATION CONTACT: Gary H. Lefkowitz of the Department, 
telephone (202) 219-8881. (This is not a toll-free number.)

General Information

    The attention of interested persons is directed to the following:
    (1) The fact that a transaction is the subject of an exemption 
under section 408(a) of the Act and/or section 4975(c)(2) of the Code 
does not relieve a fiduciary or other party in interest or disqualified 
person from certain other provisions to which the exemptions does not 
apply and the general fiduciary responsibility provisions of section 
404 of the Act, which among other things require a fiduciary to 
discharge his duties respecting the plan solely in the interest of the 
participants and beneficiaries of the plan and in a prudent fashion in 
accordance with section 404(a)(1)(B) of the Act; nor does it affect the 
requirement of section 401(a) of the Code that the plan must operate 
for the exclusive benefit of the employees of the employer maintaining 
the plan and their beneficiaries;
    (2) These exemptions are supplemental to and not in derogation of, 
any other provisions of the Act and/or the Code, including statutory or 
administrative exemptions and transactional rules. Furthermore, the 
fact that a transaction is subject to an administrative or statutory 
exemption is not dispositive of whether the transaction is in fact a 
prohibited transaction; and
    (3) The availability of these exemptions is subject to the express 
condition that the material facts and representations contained in each 
application accurately describes all material terms of the transaction 
which is the subject of the exemption.

    Signed at Washington, DC, this 12th day of January, 1995.
Ivan Strasfeld,
Director of Exemption Determinations, Pension and Welfare Benefits 
Administration, U.S. Department of Labor.
[FR Doc. 95-1199 Filed 1-17-95; 8:45 am]
BILLING CODE 4510-29-P