2013 Individual Exemptions
UBS Financial Services Inc. (the Applicant)
Permits, effective January 4, 2002 until December 9, 2005, (1) principal trades by UBS Financial Services Inc. (the Applicant) with certain plans, subject to Code section 4975, but not subject to Title I of ERISA (the IRAs), which resulted in the IRAs purchasing or selling securities from the Applicant (collectively, the Transactions); and (2) compensation paid by the IRAs to the Applicant in connection with the Transactions.
Atlas Energy, Inc. Employee Stock Ownership Plan (the Plan)
Permits, effective February 17, 2011, the past acquisition and holding of certain units of Atlas Pipeline Holdings, L.P. by the Plan in connection with a merger of Arkham Corporation with and into Atlas Energy Inc., a party in interest with respect to the Plan.
Central Pacific Bank 401(k) Retirement and Savings Plan (the Plan)
Applies, effective April 11, 2011, to the acquisition and holding of certain rights to purchase the ordinary shares of Stock (the Stock) of Central Pacific Financial Corporation (CPFC) by the Plan, a participant directed, defined contribution plan sponsored by CPFC, a party in interest with respect to the Plan, in connection with an offering of Stock by CPFC to all shareholders, including the Plan.
Silchester International Investors LLP (Silchester)
Permits the cross trading of securities between various accounts (the Accounts) managed by Silchester, where at least one of the Accounts involved in the cross trade is an ERISA Account.
EquiLend Holdings LLC (EquiLend)
Permits, effective October 1, 2012, the sale or licensing of certain data and/or analytical tools to a plan by EquiLend, a party in interest with respect to such plan. Would also permit, effective October 1, 2012, (1) the participation in EquiLend’s electronic securities lending platform (the Platform) by an equity owner of EquiLend (an Equity Owner), in its capacity as a securities lending agent for a plan (an Owner Lending Agent); (2) the sale or licensing of certain data and/or analytical tools by EquiLend to a plan for which an Equity Owner acts as a securities lending agent; and (3) the provision by an Owner Lending Agent to EquiLend of securities lending data based on off-Platform securities lending transactions conducted by an Owner Lending Agent on behalf of a plan.
The Coca-Cola Company (TCCC) and Red Re, Inc. (Red Re)
Permits (a) the reinsurance of risks and the receipt of premiums therefrom by Red Re, an affiliate of TCCC, in connection with group term life insurance sold by Metropolitan Life Insurance Company or any successor Insurance company to The Coca-Cola Company Health and Welfare Benefits Plan (the Actives Plan) to pay for group term life insurance benefits under such Actives Plan; and (b) the reinsurance of risks and the receipt of premiums therefrom by Red Re in connection with accidental death and dismemberment insurance (AD&D) sold by a Fronting Insurer to The Coca-Cola Company Retiree Benefits Plan (the Retiree Plan) to pay for AD&D benefits under the Retiree Plan.
The Mo-Kan Teamsters Apprenticeship and Training Fund (the Fund)
Permits the purchase by the Fund of certain real property located in Kansas City, Missouri from Jim Kidwell Construction, a party in interest with respect to the Fund.
Amendment to PTE 2007-05, Involving Prudential Securities Incorporated, et al. To Amend the Definition of “Rating Agency”
Amends the Underwriter Exemptions and revises the definition of “Rating Agency” by eliminating any specific reference to a particular credit rating agency, and substituting instead a requirement that a credit rating agency: (i) Is currently recognized by the U.S. Securities and Exchange Commission (SEC) as a nationally recognized statistical ratings organization (NRSRO); (ii) has indicated on its most recently filed SEC Form NRSRO that it rates “issuers of asset-backed securities”; and (iii) has had, within a period not exceeding 12 months prior to the initial issuance of the securities, at least three (3) “qualified ratings engagements.” A “qualified ratings engagement” is one (i) requested by an issuer or underwriter of securities in connection with the initial offering of the securities; (ii) for which the credit rating is compensated for providing ratings; (iii) which is made public to investors generally; and (iv) which involves the offering of securities of the type that would be granted relief by the Underwriter Exemptions. The Underwriter Exemptions are individual exemptions and transactions authorized by the Department of Labor pursuant to PTE 96-62, 67 FR 44622 (July 3, 2002) that provide relief for the origination and operation of certain asset pool investment trusts and the acquisition, holding and disposition by employee benefit plans of certain asset-backed, pass-through certificates representing undivided interests in those investment trusts.
UBS AG (UBS)
Permits entities within UBS’s Global Asset Management and Wealth Management Americas divisions that function as “qualified professional asset managers” (QPAMs) are required to satisfy additional conditions designed to protect plans in order for such QPAMs to rely on the relief provided by Prohibited Transaction Class Exemption 84–14, as a result of their affiliation with UBS Securities Japan Co. Ltd., against whom a judgment of conviction for one count of wire fraud was entered in the District Court of Connecticut in Case Number 3:12–cr–00268–RNC.
UBS AG and Its Current and Future Affiliates and Subsidiaries (UB)
Permits, effective February 1, 2008, the sale by a plan of an auction rate security to UBS, where such sale is unrelated to, and not made in connection with, a settlement agreement.
Wells Fargo Bank, N.A. (the Bank)
Permits, effective September 8, 2009, to the cash sale by four employee benefit plans (the Plans), whose assets were invested in the Bank’s collateral pools, of certain interests in two medium-term notes, for the aggregate purchase price of $375,182, to the Bank, a party in interest with respect to the Plans.
Sears Holdings Savings Plan, Sears Holdings Puerto Rico Savings Plan, and The Lands’ End, Inc. Retirement Plan
Permits, effective for the period beginning September 7, 2012 and ending October 8, 2012, (1) the acquisition of certain subscription right(s) (the Right or Rights) by the Plans from Sears Holdings Corporation (Holdings) in connection with an offering (the Offering) by Holdings of shares of common stock in Sears Hometown and Outlet Stores, Inc.; and (2) the holding of the Rights by the Plans during the subscription period of the Offering.
American International Group, Inc. Incentive Savings Plan, American General Agents’ & Managers’ Thrift Plan, and Chartis Insurance Company – Puerto Rico Capital Growth Plan
Permits, effective January 19, 2011 through January 19, 2021, (1) the acquisition by the Plans of certain warrant rights (the Warrants) from American International Group, Inc. a party in interest with respect to the Plans; and (2) the holding of the Warrants by the Plans.
D-11742 thru D-11746
FR Citation: 78 FR 43935 (07/22/13)
The ABB Inc. Cash Balance Pension Plan; the Cash Balance Pension Plan for Certain Represented Employees of ABB Inc.; the Pension Plan for Employees of the Process Analytics Division of ABB Inc. Represented by the Laborer’s International Union of North America (AFL-CIO), Local No. 1304; the Pension Plan of Fischer & Porter Company; and the ABB Inc. Pension Plan (UE 625 & UE 626) (collectively, the Plans)
Would permit to the in-kind contribution of certain U.S. Treasury Bills to the Plans by ABB Inc., a party in interest with respect to the Plans, on September 14, 2012.
FR Citation: 78 FR 55103 (09/09/13)
AT&T Inc. (together with AT&T Inc.’s Affiliates, AT&T)
Would permit the following transactions, effective September 1, 2013: (a) the one-time, in-kind contribution (the Contribution) by AT&T of 320 million series A Cumulative Perpetual Preferred Membership Interests (the Preferred Interests) of AT&T Mobility II LLC (the Issuer) to the SBC Master Pension Trust (the Trust), which holds assets of the AT&T Pension Benefit Plan (the Plan) in accordance with the terms of the Contribution Agreement (the Contribution Agreement) between Brock Fiduciary Services LLC, JPMorgan Chase Bank, N.A., as Directed Trustee of the Trust, AT&T Inc. and AT&T Mobility II LLC, dated August 30, 2013; (b) the holding of the Preferred Interests by the Trust on behalf of the Plan; (c) the disposition of the Preferred Interests by the Trust in connection with the exercise of the put option (the Put Option) by Brock Fiduciary Services LLC or its successor (the Independent Fiduciary), in accordance with the terms of the Contribution Agreement; (d) the disposition of the Preferred Interests by the Independent Fiduciary on behalf of the Trust in connection with the exercise of the call option (the Call Option), in accordance with the terms of the Contribution Agreement; (e) the disposition, restructuring, adjustment, or recapitalization of the Preferred Interests resulting from a change of control of the Issuer, in accordance with the terms of the Contribution Agreement; (f) the acquisition and holding by the Trust of shares in AT&T common stock received in connection with the exercise of the Put Option or the Call Option, in accordance with the terms of the Contribution Agreement, to the extent such acquisition and holding is not permitted by section 407(a) of ERISA; and (g) the deferred payment by AT&T to the Trust of any amounts due under the Call Option or the Put Option, in accordance with the terms of the Contribution Agreement.
FR Citation: 78 FR 66769 (11/06/13)
Bank of America Corporation (BAC)
Would permit the receipt of certain relationship benefits by an individual for whose benefit a covered plan is established or maintained, or by such individual’s family members, from BAC, pursuant to an arrangement in which the account value of, or the fees incurred for services provided to the covered plan is taken into account for purposes of determining eligibility to receive such relationship benefits.
This proposed exemption seeks to expand upon the relief provided in class PTEs 93-33 and 97-11, which generally give relief from the prohibited transactions provisions of ERISA and the Code to the beneficial owners of certain individual retirement accounts (IRAs) when banks or broker-dealers consider the account value, and fees charged to, IRAs as part of a relationship banking or brokerage program offered to its customers. BAC’s requested exemption would allow BAC to combine its customers’ banking accounts and brokerage accounts into one overarching relationship benefits program. Additionally, it would expand the list of accounts that could be included in the relationship benefits program (e.g., to Archer MSAs and HSAs). Finally, the requested exemption would permit BAC to offer certain relationship benefits that were not specifically called out in the previous class exemptions, but which may have been permitted separately by a bank or broker-dealer.
FR Citation: 78 FR 66773 (11/06/13)
Intel Corporation (Intel)
Would permit: (1) the reinsurance of risks and the receipt of premiums therefrom by Technology Assurance Limited (TAL), a captive insurance company that is wholly-owned by Intel, in connection with basic and supplemental group term life insurance sold by the Minnesota Life Insurance Company (MN Life), or any successor insurance company which is unrelated to Intel (the Fronting Insurer), to the Intel Group Life Insurance Plan; and (2) the reinsurance of risks and the receipt of premiums therefrom by TAL, in connection with basic and supplemental accidental death and dismemberment (AD&D) insurance sold by the Fronting Insurer to the Intel Group AD&D Plan.
Studley, Inc. Section 401(k) Profit Sharing Plan (the Plan)
Would permit the Plan’s sale of an illiquid, 8.828121% minority general partnership interest (the Interest), in the Julien J. Studley N. Street Partnership (the Partnership), to Studley, Inc. (Studley), the Plan sponsor, for $900,000. The Interest represents the Plan’s ownership interest in an office building. The proposed exemption would provide relief from section 406(b)(3) of ERISA (as well as section 406(a)(1)(A) and (D) and section 406(b)(1) and (2) of ERISA) since Studley may receive from the Partnership, subsequent to the sale, the Plan’s current share of its undistributed revenue. This undistributed revenue is not currently quantifiable due to litigation between Studley and the majority partners of the Partnership. The proposed conditions also include a “true-up” provision that generally requires Studley to pay the Plan for the appreciation in the Interest during the 7-year period subsequent to the publication of the exemption, once granted.