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Secretary of Labor Thomas E. Perez
Grant of Individual Exemptions; Aultman Retirement Savings Plan [Notices] [05/06/1996]

EBSA (Formerly PWBA) Federal Register Notice

Grant of Individual Exemptions; Aultman Retirement Savings Plan [05/06/1996]

[PDF Version]

Volume 61, Number 88, Page 20276-20278

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DEPARTMENT OF LABOR

Pension and Welfare Benefits Administration
[Prohibited Transaction Exemption 96-30; Exemption Application No. D-
09904, et al.]

 
Grant of Individual Exemptions; Aultman Retirement Savings Plan

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.

[[Page 20277]]

    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.

Aultman Retirement Savings Plan (the Plan) Located in Canton, Ohio

[Prohibited Transaction Exemption 96-30; Exemption Application No. D-
09904]

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 guarantee (the Guarantee) by Aultman Health 
Services Association (the Employer), the sponsor of the Plan, of 
amounts due the Plan with respect to four guaranteed investment 
contracts issued by Confederation Life (Confederation Life), including 
the Employer's potential cash advances to the Plan (the Advances) 
pursuant to the Guarantee and the potential repayment of the Advances 
(the Repayments); provided that the following conditions are satisfied:
    (A) All terms of the transactions are no less favorable to the Plan 
than those which the Plan could obtain in an arm's-length transaction 
with an unrelated party;
    (B) The Plan does not incur any expenses or pay any interest with 
respect to the transactions;
    (C) The Repayments, if any, are restricted to (1) excess Advances 
made by the Employer, and (2) GIC Proceeds, defined as all amounts 
actually received by the Plan with respect to the GICs from 
Confederation Life, any conservator, trustee or person performing 
similar functions with respect to Confederation Life or acting as 
surety or insurer with respect to Confederation Life, and/or any state 
guaranty fund or other entity paying the obligations of Confederation 
Life with respect to the GICs;
    (D) The Repayments will be made only after the Plan has recovered, 
through the Advances plus GIC Proceeds, the amount guaranteed by the 
Employer with respect to the GICs; and
    (E) To the extent the Advances exceed GIC Proceeds, repayment of 
the difference will be waived.
    For a more complete statement of the facts and representations 
supporting this exemption, refer to the notice of proposed exemption 
published on February 13, 1996 at 61 FR 5572.

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

C.C.L. Label, Inc. 401(k) Profit-Sharing Plan (the Plan) Located in 
Grand Rapids, Michigan

[Prohibited Transaction Exemption 96-31; Exemption Application No. D-
10168]

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 sale by the Plan of certain publicly traded 
limited partnership interests (the Interests) to CCL Label, Inc. (CCL), 
a party in interest with respect to the Plan, provided that the 
following conditions are satisfied: (1) The sale is a one-time 
transaction for cash; (2) the Plan pays no commissions nor other 
expenses relating to the sale; and (3) the purchase price is the 
greater of: (a) the fair market value of the Interests as of the date 
of the sale, or (b) the original acquisition cost of the Interests.
    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 March 12, 1996 at 61 FR 
10016.

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

Coin Acceptors, Inc. Savings and Protection Plan (the Plan) Located in 
St. Louis, Missouri

[Prohibited Transaction Exemption 96-32; Exemption Application No. D-
10183]

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 past sale by the Plan of certain publicly traded 
securities (the Securities) to Coin Acceptors, Inc. (Coin Acceptors), a 
party in interest with respect to the Plan, provided that the following 
conditions were satisfied: (1) The sale was a one-time transaction for 
cash; (2) the Plan paid no commissions nor other expenses relating to 
the sale; (3) the purchase price was the aggregate fair market value of 
the Securities as of the date of the sale, as determined by the Plan's 
independent investment manager by reference to the closing prices for 
the Securities on the New York Stock Exchange (NYSE); and (4) the terms 
of the sale were at least as favorable to the Plan as those obtainable 
in an arm's length transaction with an unrelated party.

EFFECTIVE DATE: The exemption is effective as of September 29, 1995.
    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 March 5, 1996 at 61 FR 
8686.

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

Gail L. Belt Self Employed Retirement Plan (the Plan) Located in 
Vienna, Virginia

[Prohibited Transaction Exemption 96-33; Exemption Application No. D-
10219]

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 sale of a parcel of real property (the Property) 
by the Plan to Ms. Gail L. Belt, a disqualified person with respect to 
the Plan for $115,000, provided the following conditions are satisfied: 
(a) The sale is a one-time transaction for cash; (b) the Plan pays no 
commissions or expenses in connection with the transaction; (c) the 
Plan receives not less than the greater of the fair market value of the 
Property or its cost in acquiring

[[Page 20278]]

the Property; (d) the fair market value of the Property has been 
determined by a qualified, independent appraiser; and (e) Ms. Belt is 
the only Plan participant to be affected by the transaction, and she 
desires that the transaction be consummated.*
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    * Since Ms. Belt is the sole owner of the Plan sponsor and the 
only participant in the Plan, there is no jurisdiction under Title I 
of the Act pursuant to 29 CFR 2510.3-3(b). 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 March 22, 1996 at 61 FR 
11895.

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, D.C., this 30th day of April, 1996.
Ivan Strasfeld,
Director of Exemption Determination, Pension and Welfare Benefits 
Administration, Department of Labor.
[FR Doc. 96-11118 Filed 5-3-96; 8:45 am]
BILLING CODE 4510-29-P