Grant of Individual Exemptions; General Motors Hourly-Rate Employees Pension Plan; [Notices] [01/17/2001]

EBSA (Formerly PWBA) Federal Register Notice
Grant of Individual Exemptions; General Motors Hourly-Rate Employees Pension Plan; [01/17/2001]

[PDF Version]

Volume 66, Number 11, Page 4042-4043


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DEPARTMENT OF LABOR

Pension and Welfare Benefits Administration

[Prohibited Transaction Exemption 2001-01; Exemption Application Nos. 
D-10713, D-10714, D-10715, D-10716, and D-10717 et al.]

 
Grant of Individual Exemptions; General Motors Hourly-Rate 
Employees Pension Plan; General Motors Retirement Program for Salaried 
Employees; Saturn Individual Retirement Plan for Represented Team 
Members; Saturn Personal Choices Retirement Plan for Non-Represented 
Team Members; Employees' Retirement Plan for GMAC Mortgage Group; 
Delphi Hourly-Rate Employees Pension Plan; and Delphi Retirement 
Program for Salaried Employees (Collectively, the Plans)

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, 5 U.S.C. 
App. 1 (1996), 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.

General Motors Hourly-Rate Employees Pension Plan; General Motors 
Retirement Program for Salaried Employees; Saturn Individual Retirement 
Plan for Represented Team Members; Saturn Personal Choices Retirement 
Plan for Non-Represented Team Members; Employees' Retirement Plan for 
GMAC Mortgage Group; Delphi Hourly-Rate Employees Pension Plan; and 
Delphi Retirement Program for Salaried Employees (Collectively, the 
Plans) Located in New York, New York

[Prohibited Transaction Exemption 2001-01; Exemption Application Nos. 
D-10713; D-10714; D-10715; D-10716; and D-10717]

Exemption

    The restrictions of section 406(a) 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 (D) of the Code, shall not apply to 
(1) the past and continuing lease (the Lease) by the Plans to CB 
Richard Ellis, Inc. (CB Richard Ellis), a party in interest with 
respect to the Plans, of commercial space in a certain office building; 
and (2) the exercise, by CB Richard Ellis, of an option to renew the 
Lease for one additional term, provided that the following conditions 
are met:
    (a) All the terms and conditions of the Lease, including those 
providing CB Richard Ellis with an option to renew the Lease, are at 
least as favorable to the Plans as terms and conditions the Plans could 
have obtained in an arm's length transaction with an unrelated party;
    (b) The interests of the Plans for all purposes under the Lease, 
including any renewal thereof, are represented by a qualified, 
independent fiduciary;
    (c) The rent paid by CB Richard Ellis under the Lease, including 
any renewal thereof, is, at all times, no less than the fair market 
rental value of the leased space; and
    (d) The independent fiduciary monitors the Lease, and any renewal 
thereof, on behalf of the Plans, and takes whatever actions necessary 
to safeguard the interests of the Plans and their participants and 
beneficiaries.

EFFECTIVE DATE: This exemption is effective as of December 17, 1998, 
the date on which CB Richard Ellis entered into the Lease.
    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 (the Notice) published on October 19, 
2000 at 65 FR 62761.
    Notice to Interested Persons: The applicant was unable to notify 
interested persons within the time period specified in the Notice. 
However, the applicant stated that interested persons, including the 
appropriate fiduciaries of the Plans, were notified in the manner and 
time agreed to by the Department, by November 18, 2000. Interested 
persons were informed that they had 30 days to submit any written 
comments regarding the Notice to the Department. No written comments 
were received by the Department.

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

Care Services Employees' 401(k) Profit Sharing Plan and Trust (the 
Plan) Located in Beachwood, OH

[Prohibited Transaction Exemption 2001-02; Exemption Application No. D-
10771]

Exemption

    The restrictions of sections 406(a) and 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 (1) cash sale by the Plan, occurring on December 
30, 1997, of certain assets (the Assets), to Mr. Warren L. Wolfson, a 
party in interest with respect to the Plan; and (2) the prospective 
cash resale of the Assets by the Plan to Mr. Wolfson.

[[Page 4043]]

    This exemption is subject to the following conditions:
    (a) Each sale of the Assets was or will be a one-time transaction 
for cash.
    (b) The Plan received or will receive no less than the fair market 
value of the Assets at the time of each sale.
    (c) The sales price for each Asset was determined or will be 
determined by a qualified, independent appraiser at the time of each 
sale transaction.
    (d) The terms of the past and prospective sales transactions were 
or will be no less favorable to the Plan than those obtainable in 
similar transactions negotiated at arm's length with unrelated parties.
    (e) The Plan did not incur any fees or commissions in connection 
with the past sale of the Assets nor will it incur any fees or 
commissions expenses with respect to the prospective sale of such 
Assets.
    (f) Within 60 days of the publication, in the Federal Register, of 
the notice granting this proposed exemption, Mr. Wolfson will file a 
Form 5330 with the Internal Revenue Service and pay all appropriate 
excise taxes that may be due and owing with respect to prohibited 
transactions arising in connection with certain of the Assets.

EFFECTIVE DATE: This exemption is effective as of December 30, 1997 
with respect to the initial sale of the Assets by the Plan to Mr. 
Wolfson. In addition, this exemption is effective as of the date of the 
grant with respect to the resale of the Assets by the Plan to Mr. 
Wolfson.
    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 October 31, 2000 at 65 FR 
65011.

FOR FURTHER INFORMATION CONTACT: Ms. Jan D. Broady, Department of 
Labor, telephone (202) 219-8881. (This is not a toll-free number.)

IRAs for Eldon Nysether and Mark Nysether (the IRAs) Located in 
Seattle, Washington

    [Prohibited Transaction Exemption 2001-03; Exemption Application 
Nos. D-10901 and D-10902]

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 by the IRAs of their interests in 
certain improved real property (the Property) to Sea-Land Development 
Corporation, a disqualified person with respect to the IRAs,\1\ 
provided that the following conditions are satisfied: (1) The sale is a 
one-time transaction for cash; (2) the IRAs pay no commissions nor 
other expenses relating to the sale; and (3) the sale price received by 
the IRAs equals the Property's fair market value, as of the date of the 
sale, as established by a qualified, independent appraiser.
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    \1\ Pursuant to 29 CFR 2510.3-2(d), the IRAs are 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 6, 2000 at 65 FR 
76292.

FOR FURTHER INFORMATION CONTACT: Ms. Karin Weng 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, D.C., this 10th day of January, 2001.
Ivan Strasfeld,
Director of Exemption Determinations, Pension and Welfare Benefits 
Administration, U.S. Department of Labor.
[FR Doc. 01-1196 Filed 1-16-01; 8:45 am]
BILLING CODE 4510-29-P