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Employee Benefits Security Administration

EBSA Federal Register Notice

Grant of Individual Exemption Involving the Derose Dental Offices Inc., Profit Sharing Plan, Located in Racine, WI [07/02/2007]

[PDF Version]

Volume 72, Number 126, Page 36045

[[Page 36045]]



Employee Benefits Security Administration

[Prohibited Transaction Exemption 2007-09; Exemption Application No. D-

Grant of Individual Exemption Involving the Derose Dental Offices 
Inc., Profit Sharing Plan, Located in Racine, WI

AGENCY: Employee Benefits Security Administration, Labor.

ACTION: Grant of individual exemption.


SUMMARY: This document contains an exemption issued by the Department 
of Labor (the Department) from certain of the prohibited transaction 
restrictions of the Employee Retirement Income Security Act of 1974 
(ERISA or the Act) and/or the Internal Revenue Code of 1986 (the Code).
    A notice was published in the Federal Register of the pendency 
before the Department of a proposal to grant such exemption. The notice 
set forth a summary of facts and representations contained in the 
application for exemption and referred interested persons to the 
application for a complete statement of the facts and representations. 
The application has been available for public inspection at the 
Department in Washington, DC. The notice also invited interested 
persons to submit comments on the requested exemption to the 
Department. In addition the notice stated that any interested person 
might submit a written request that a public hearing be held (where 
appropriate). The applicant has represented that it has complied with 
the requirements of the notification to interested persons. No requests 
for a hearing were received by the Department. Public comments were 
received by the Department as described in the granted exemption.
    The notice of proposed exemption was issued and the exemption is 
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 exemption is administratively feasible;
    (b) The exemption is in the interests of the plan and its 
participants and beneficiaries; and
    (c) The exemption is protective of the rights of the participants 
and beneficiaries of the plan.

The DeRose Dental Offices, Inc., S.C. Profit Sharing Plan (the Plan)

Located in Racine, Wisconsin

[Prohibited Transaction Exemption 2007-09; Exemption Application No. D-

    The restrictions of section 406(a), 406(b)(1) and (b)(2) of the 
Act, and the sanctions resulting from the application of section 
4975(a) and (b) of the Code, by reason of section 4975(c)(1)(A) through 
(E) of the Code, shall not apply to the December 29, 2006 sale by the 
Plan of 2,174 shares of stock (the Stock) in Wisconsin Bancshares, Inc. 
each to Francesca DeRose and Nicolet DeRose, parties in interest with 
respect to the Plan, provided the following conditions are satisfied:
    (a) The sales of the Stock were one-time transactions for cash;
    (b) The Plan paid no commissions or other fees in connection with 
the sales;
    (c) The terms of the transactions were at least as favorable to the 
Plan as those the Plan could obtain in similar transactions with an 
unrelated party; and
    (d) The sales price of the Stock was determined by a qualified, 
independent appraiser.
    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, 2007 at 72 FR 

DATES: Effective Date: This exemption is effective as of December 29, 

FOR FURTHER INFORMATION CONTACT: Gary H. Lefkowitz of the Department, 
telephone (202) 693-8546. (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 exemption 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) This exemption is 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 this exemption is subject to the express 
condition that the material facts and representations contained in the 
application accurately describes all material terms of the transaction 
which is the subject of the exemption.

    Signed at Washington, DC, this 26th day of June, 2007.
Ivan Strasfeld,
Director of Exemption, Determinations Employee Benefits, Security 
Administration, Department of Labor.
[FR Doc. E7-12674 Filed 6-29-07; 8:45 am]