80 FR 19687 - Exemptions From Certain Prohibited Transaction Restrictions
DEPARTMENT OF LABOR
Employee Benefits Security Administration Federal Register Volume 80, Issue 70 (April 13, 2015)
Employee Benefits Security Administration
Federal Register Volume 80, Issue 70 (April 13, 2015)
| Page Range | 19687-19691 | |
| FR Document | 2015-08301 |
[Federal Register Volume 80, Number 70 (Monday, April 13, 2015)] [Notices] [Pages 19687-19691] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-08301] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF LABOR Employee Benefits Security Administration Exemptions From Certain Prohibited Transaction Restrictions AGENCY: Employee Benefits Security Administration, Labor. ACTION: Grant of Individual Exemptions. ----------------------------------------------------------------------- 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 (ERISA or the Act) and/or the Internal Revenue Code of 1986 (the Code). This notice includes the following: 2015-01, The United Association of Journeymen and Apprentices of the Plumbers and Pipefitters Local Union No. 189 Pension Plan, D-11750; 2015-02, The Camco Financial & Subsidiaries Salary Savings Plan and Huntington Bancshares, Inc., D- 11751; 2015-03, Teamsters Local Union No. 727 Pension Fund, D-11770; 2015-04, Craftsman Independent Union Local #1 Health, Welfare & Hospitalization Trust Fund, L-11775; and 2015-05, Local 268, Sheet Metal Workers International Association, AFL-CIO, L-11794. SUPPLEMENTARY INFORMATION: 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 (76 FR 66637, 66644, October 27, 2011) \1\ and based upon the entire record, the Department makes the following findings: --------------------------------------------------------------------------- \1\ The Department has considered exemption applications received prior to December 27, 2011 under the exemption procedures set forth in 29 CFR part 2570, subpart B (55 FR 32836, 32847, August 10, 1990). --------------------------------------------------------------------------- (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 United Association of Journeymen and Apprentices of The Plumbers and Pipefitters Local Union No. 189 Pension Plan, as Amended (the Plan or the Applicant) Located in Columbus, Ohio [Prohibited Transaction Exemption 2015-01; Exemption Application No. D-11750] Exemption The restrictions of section 406(a)(1)(A) and (D) and section 406(b)(1) and (b)(2) of the Act and the sanctions resulting from the application of section 4975(c)(1)(A), (D) and (E) of the Code, shall not apply to the sale (Sale) of certain improved real property (the Property) by the Plan to Local #189 of the United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada (the Union), a party in interest with respect to the Plan, provided that the following conditions are satisfied: (a) The Sale is a one-time transaction for cash; (b) As consideration, the Plan receives $3,100,000 or the fair market value of the Property as determined by a qualified, independent appraiser (the Appraiser) in a written appraisal of the Property, which is updated on the date of Sale; (c) The Plan pays no commissions, costs or fees with respect to the Sale; (d) The terms and conditions of the Sale are at least as favorable to the Plan as those obtainable in an arm's length transaction with an unrelated party; (e) The Sale has been reviewed and approved by a qualified, independent fiduciary, who, among other things: has reviewed and approved the methodology used by the Appraiser and has ensured that the appraisal methodology was properly applied in determining the fair market value of the Property; and has determined that it is prudent to go forward with the Sale. Written Comments In the Notice of Proposed Exemption (the Notice), the Department invited all interested persons to submit written comments and requests for a hearing on the proposed exemption within 45 days of the publication, on November 26, 2014, of the Notice in the Federal Register. All comments and requests for a hearing were due by January 10, 2015. During the comment period, the Department received one written comment with respect to the Notice that was submitted by a Plan participant (the Commenter), and no requests for a hearing. In addition, the Applicant informed the Department of an updated appraisal of the Property, which was later submitted to the Department and required the Department's modification to the operative language of the Notice. Discussed below are the comment and the Department's revision to the Notice. The Comment The Commenter asked the Department to deny the proposed exemption, stating that the proposed transaction is an attempt by the employers to put the financial burden of a pension plan ``in the yellow'' on the backs of Union members, instead of raising the Plan's contribution rate. In response, the Applicant states that the comment is factually inaccurate. First, according to the Applicant, the Commenter incorrectly states that the Plan is ``in the yellow.'' To clarify the meaning of this actuarial phrase, the Applicant represents that plans are considered ``in the green zone'' when [[Page 19688]] the funded percentage is 80% or higher; ``in the red zone'' when the funded percentage is below 65%; and ``in the yellow zone'' when the funded percentage is between 65% and 80%. The Applicant represents that the Plan's actuary has certified that the Plan has been ``in the green zone'' for each plan year since the plan year beginning April 1, 2011. Further, the Applicant represents that the actual funded percentages, as certified by the actuary each year, have been as follows: ------------------------------------------------------------------------ PPA Funded Percentage Plan year beginning April 1 certified by Zone actuary ------------------------------------------------------------------------ 2014............................ 90.2% Green 2013............................ 85.0% Green 2012............................ 83.5% Green 2011............................ 80.4% Green 2010............................ 74.2% Yellow ------------------------------------------------------------------------ Second, the Applicant states that whether the Plan holds the illiquid asset (i.e., the Property) or the liquid investment (i.e., the cash proceeds that can be reinvested), the proposed transaction would not change the funded status of the Plan and, therefore, would not affect whether or not the per hour contribution rate would need to be increased. Third, and lastly, the Applicant states that the proposed exemption was not initiated by the employers, but at the request of the Union to allow it to purchase the Property. The Applicant explains that the Union desires to purchase the Property for the following reasons: (1) The Plumbers and Pipefitters Local #189 Joint Apprenticeship and Journeyman Training Committee, which leases space in the building (the Building) located on the Property, needs more teaching space, but the Plan is unwilling to expand the Building because it has determined that such an investment would be imprudent since the current fair market value of the Building is based on the redevelopment value of the land; (2) there is a significant cost associated with moving the teaching equipment that is currently installed in the Building to another location; and (3) the Union desires to retain use of the current facility even though the Plan has received two unsolicited offers to purchase the Property. With respect to the two unsolicited offers, the Applicant represents that it received an unsolicited offer of $2,700,000 (with required covenants, a commission payable, and significant contingencies) in January 2014 and an earlier unsolicited offer of $3,310,000 (with required covenants, a commission payable, and significant contingencies) in January 2008 (the 2008 Offer). The Applicant represents that although the 2008 Offer exceeds the cash price payable by the Union to the Plan (i.e., $3,100,000) by $210,000, the net proceeds the Plan will receive from the Union will be significantly higher than what the Plan would have received from the 2008 Offer because of the covenant risks, commissions, and contingencies attached to the 2008 Offer. According to the Applicant, the 2008 Offer was contingent on the purchaser's receipt of: (1) satisfactory soil tests and environmental reports that the premises were free from environmental contamination; \2\ (2) satisfactory engineering and economic feasibility reports regarding the ``economic viability of the purchaser's project;'' (3) zoning approval; \3\ (4) a survey of the Property by an engineer or surveyor acceptable to the purchaser at the Plan's expense; and (5) an affidavit from the Plan that it had ``no knowledge of the dumping, storing or past or present existence of any hazardous waste or products on the'' Property.\4\ The Applicant represents that the Plan did not believe that it would be able to satisfy these contingencies. Further, the Applicant represents that even if the Plan could have satisfied the contingencies, it would have done so at a significant expense. --------------------------------------------------------------------------- \2\ The Applicant represents that given the training with welding supplies and medical gases, the Plan had significant concern about whether a clean environmental report would be obtainable. \3\ The Applicant represents that current zoning limitations significantly restrict the potential uses of the Property. \4\ As mentioned in the preceding footnote, the Applicant represents that because of the use and storage of various chemicals on the Property, it was not clear whether the Plan could have given such an affidavit. --------------------------------------------------------------------------- Modification of the Notice On January 5, 2015, the Applicant informed the Department of an appraisal report dated December 16, 2014 (the December 2014 Appraisal), that had been prepared by Thomas J. Horner, MAI, SRA, ASA, the Appraiser. On December 2, 2014, the Appraiser placed the fair market value of the Property at $3,100,000. Because the fair market value of the Property as reported in the December 2014 Appraisal represents an increase of $200,000 over the $2,900,000 fair market value reported by the Appraiser as of January 27, 2014 in an appraisal report dated January 31, 2014, the Department has modified condition (b) of the exemption by replacing the ``$2,900,000'' value with ``$3,100,000'' to reflect the most recent valuation of the Property. Accordingly, after giving full consideration to the entire record, including the written comment and the Department's modification of the Notice, the Department has decided to grant the exemption. The complete application file (D-11750), and all supplemental submissions received by the Department, are available for public inspection in the Public Disclosure Room of the Employee Benefits Security Administration, Room N-1515, U.S. Department of Labor, 200 Constitution Avenue NW., Washington, DC 20210. For a more complete statement of facts and representations supporting the Department's decision to grant this exemption, refer to the Notice published in the Federal Register at 79 FR 70624 (November 26, 2014). For Further Information Contact: Ms. Anna Mpras Vaughan of the Department at (202) 693-8565. (This is not a toll-free number.) The Camco Financial & Subsidiaries Salary Savings Plan (the Plan) and Huntington Bancshares, Inc. (Huntington) Located in Cambridge, OH and Columbus, OH [Prohibited Transaction Exemption 2015-02; Application No. D-11751] Exemption Section I: Transactions The restrictions of sections 406(a)(1)(A), 406(a)(1)(E), 406(a)(2), 406(b)(1), 406(b)(2), and 407(a)(1)(A) of the Act and the sanctions resulting from the application of section 4975 of the Code, by reason of sections 4975(c)(1)(A) and (E) of the Code,\5\ shall not apply to the acquisition and holding of certain warrants (the Warrants) by the individually-directed account(s) (the Account(s)) of certain participant(s) in the Plan in connection with an offering (the Offering) of shares of common stock (the Stock) of Camco Financial Corporation (Camco), the sponsor of the Plan and a party in interest with respect to the Plan. --------------------------------------------------------------------------- \5\ For purposes of this exemption, references to specific provisions of Title I of the Act, unless otherwise specified, refer also to the corresponding provisions of the Code. --------------------------------------------------------------------------- Section II: Conditions (a) The Accounts acquired the Warrants in connection with the exercise of subscription rights (the Rights) to purchase Stock by the Plan's directed trustee (the Directed Trustee) on behalf of Plan participants; (b) Each stockholder, including each of the Accounts holding Stock on behalf of Plan participants, received the same proportionate number of Rights based on the number of shares of Stock held [[Page 19689]] as of July 29, 2012 (the Record Date), and the same proportionate number of Warrants based on the number of Rights exercised during the Offering; (c) The Plan participant whose Account received the Warrants made, or will make, all decisions with respect to the holding and exercise of such Warrants; (d) The Plan did not pay, nor will it pay, any brokerage fees, commissions, or other fees or expenses to any related broker in connection with the acquisition, holding, and exercise of the Rights or Warrants; (e) The acquisition of the Rights by the Accounts resulted from an independent corporate act of Camco; and (f) The Rights and Warrants were acquired pursuant to and in accordance with, provisions under the Plan for individually directed investments of the Accounts holding Stock on behalf of Plan participants. Effective Date: This exemption is effective from November 1, 2012, until the Warrants are exercised or expire. Written Comments The Department invited all interested persons to submit written comments and/or requests for a public hearing with respect to the notice of proposed exemption, published on November 26, 2014, at 79 FR 70628. All comments and requests for hearing were due by January 10, 2015. During the comment period, the Department received no comments and no requests for a hearing from interested persons. Accordingly, after giving full consideration to the entire record, the Department has decided to grant the exemption. The complete application file (Application No. D-11751), including all supplemental submissions received by the Department, is available for public inspection in the Public Disclosure Room of the Employee Benefits Security Administration, Room N-1515, U.S. Department of Labor, 200 Constitution Avenue NW., Washington, DC 20210. 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 26, 2014, at 79 FR 70628. FOR FURTHER INFORMATION CONTACT: Ms. Jennifer Brown of the ((- Department, telephone (202) 693-83520. (This is not a toll-free number.) Teamsters Local Union No. 727 Pension Fund (the Fund) Located in Chicago, Illinois [Prohibited Transaction Exemption 2015-03; Application No. D-11770] Exemption Section I. Covered Transactions The restrictions of sections 406(a)(1)(A) and (D) of the Employee Retirement Income Security Act of 1974, as amended (ERISA), and the sanctions resulting from the application of section 4975 of the Internal Revenue Code of 1986, as amended (the Code), by reason of section 4975(c)(1)(A) and (D) of the Code, shall not apply to: (1) The sale (the Sale) by the Fund of three separate 25 percent interests in 1300 Higgins Road LLC (the LLC), a limited liability company of which the Fund is the sole member (each, an LLC Interest, and collectively, the LLC Interests), respectively, to each of Teamsters Local Union No. 700 (Local 700), Teamsters Local Union No. 727 (Local 727), and the Teamsters Joint Council No. 25 (the Joint Council, and together with Local 700 and Local 727, the Unions); and (2) the subsequent Sale of the Fund's remaining 25 percent LLC interest (the Fund's LLC Interest) to the Unions due to the exercise by the Fund of a put right to sell the Fund's LLC Interest to the Unions (the Put Right), provided that the conditions in Section II are satisfied. Section II. Conditions for Relief (a) The Fund receives from each of the Unions, as consideration for the Sale of the LLC Interests, a cash amount equal to 25 percent of the greater of: (1) The original purchase price paid by the Fund, or (2) the fair market value of the O'Hare Corporate Center in Park Ridge, Illinois (the Property), determined on the date of the Sale by an Independent Appraiser; (b) The Fund, upon exercise of the Put Right, receives from the Unions a one-time aggregate cash amount equal to 25 percent of the greater of: (1) The original purchase price paid by the Fund, or (2) the fair market value of the Property on the date of exercise of the Put Right, as determined by an Independent Appraiser; (c) The Sale and the exercise of the Put Right are each one-time transactions for cash; (d) The Independent Fiduciary: (1) Analyzes and approves the terms of the Sale and Put Right; (2) ensures that the terms of the Sale and Put Right and the conditions of the exemption are met; (3) has sole responsibility for the exercise of the Put Right on behalf of the Fund; (4) has sole responsibility and authority for the management and operation of the LLC and the Property; and (5) selects the Independent Appraiser and verifies the methodology used by the Independent Appraiser in determining the fair market value of the Property for all purposes under this proposed exemption; (e) An Independent Appraiser, who is selected by the Independent Fiduciary, establishes the fair market value of the Property for purposes of the Sale and the Put Right, using a methodology approved by the Independent Fiduciary; (f) The Fund does not pay any commissions, costs or other expenses in connection with the Sale and Put Right, other than the legal fees of the Fund's counsel, the services of the Independent Fiduciary and the services of the Independent Appraiser; (g) Since its acquisition of the Property, the Fund's ownership interest in the Property has constituted five percent or less of the Fund's assets, and immediately after the Sale the Fund's ownership interest in the Property will be less than two percent of the Fund's assets; (h) No member of the LLC shall, directly or indirectly, without the approval of the Independent Fiduciary: (1) Act for or on behalf of the LLC; (2) transact any business in the name of the LLC; or (3) sign documents for or otherwise bind the LLC; (i) No LLC Interests shall be transferable by the Unions prior to the exercise of the Put Right by the Fund, without the approval of the Independent Fiduciary; (j) Any trustee of the Fund must recuse himself or herself from any vote regarding the termination or removal of the Independent Fiduciary for the Fund if he or she is an officer (or a relative of an officer as defined in Section III) of any of the Unions; (k) The terms and conditions of the Sale and the Put Right are at least as favorable to the Fund as those obtainable in an arm's-length transaction with an unrelated third party; and (l) The Sale or Put Right is not part of an arrangement, agreement, or understanding designed to benefit a party in interest with respect to the Fund. Section III. Definitions (a) The term ``relative'' is a relative as that term is defined in section 3(15) of ERISA, and also includes a brother, sister, and a spouse of a brother or sister; (b) The term ``Independent Fiduciary'' means Intercontinental Real Estate Corporation (Intercontinental) or another fiduciary of the Plan who (1) is [[Page 19690]] independent or unrelated to the Unions and their affiliates and has the appropriate training, experience, and facilities to act on behalf of the Plan regarding the covered transactions in accordance with the fiduciary duties and responsibilities prescribed by ERISA (including, if necessary, the responsibility to seek the counsel of knowledgeable advisors to assist in its compliance with ERISA), and (2) if relevant, succeeds Intercontinental in its capacity as Fiduciary to the Plans in connection with the transactions described herein. The Independent Fiduciary will not be deemed to be independent of and unrelated to the Unions and their affiliates if: (i) Such Independent Fiduciary directly or indirectly controls, is controlled by or is under common control, with the Unions and their affiliates; (ii) such Independent Fiduciary directly or indirectly receives any compensation or other consideration in connection with any transaction described in this proposed exemption other than for acting as independent fiduciary in connection with the transactions described herein, provided that the amount or payment of such compensation is not contingent upon, or in any way affected by, the Independent Fiduciary's ultimate decision; and (iii) the annual gross revenue received by the Independent Fiduciary, during any year of its engagement, from the Unions and their affiliates, exceeds two percent (2%) of the Independent Fiduciary's annual gross revenue from all sources (for federal income tax purposes) for its prior tax year; (c) The term ``Independent Appraiser'' means an individual or entity meeting the definition of a ``Qualified Independent Appraiser'' under 29 CFR 2570.31(i) retained to determine, on behalf of the Plans, the fair market value of the Property as of the date of the Sale, and may be the Independent Fiduciary, provided it satisfies the definition of Independent Appraiser herein; (d) The term ``affiliate'' of a person includes: (1) Any person directly or indirectly through one or more intermediaries, controlling, controlled by, or under common control with, the person; (2) Any officer, director, employee, relative, or partner of the person; or (3) Any corporation or partnership of which such person is an officer; and (e) The term ``control'' means the power to exercise a controlling influence over the management or policies of a person other than an individual. Effective Date: This exemption is effective as of its date of publication in the Federal Register. Written Comments The Department invited all interested persons to submit written comments and/or requests for a public hearing with respect to the notice of proposed exemption (the Notice), published on December 30, 2014, at 79 FR 78482. All comments and requests for hearing were due by February 13, 2015. During the comment period, the Department received several phone inquiries that generally concerned matters outside the scope of the exemption. Furthermore, the Department received no written comments and no requests for a hearing from interested persons. However, the Department has made one technical correction to the Notice, as described below. The Department's Technical Correction The Department notes that the Notice incorrectly identifies the Fund as ``Teamsters Union Local No. 727 Pension Fund (the Fund).'' However, this notice correctly identifies the Fund as ``Teamsters Local Union No. 727 Pension Fund (the Fund).'' After giving full consideration to the entire record, the Department has decided to grant the exemption. The complete application file (Application No. D-11770), including all supplemental submissions received by the Department, is available for public inspection in the Public Disclosure Room of the Employee Benefits Security Administration, Room N-1515, U.S. Department of Labor, 200 Constitution Avenue NW., Washington, DC 20210. 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 30, 2014, at 79 FR 78482. For Further Information Contact: Mr. Scott Ness of the Department, telephone (202) 693-8561. (This is not a toll-free number.) Craftsman Independent Union Local #1 Health, Welfare & Hospitalization Trust Fund (the Plan) Cape Girardeau, Missouri [Prohibited Transaction Exemption 2015-04; Exemption Application No. L-11775] Exemption The restrictions of section 406(a)(1)(A) and (D) of the Act shall not apply to the sale by the Plan of a parcel of improved real property (the Property) to the Craftsman Independent Union Local #1 (the Union), a party in interest with respect to the Plan, provided that the following conditions are satisfied: (a) The sale is a one-time transaction for cash; (b) The sales price for the Property is the greater of either: (1) $250,000; or (2) the fair market value of the Property as established by qualified independent appraisers (the Appraisers) in an appraisal of the Property that is updated on the date of the sale; (c) RMI, as the qualified independent fiduciary, reviews and approves the methodology used by the Appraisers to ensure that such methodology is properly applied in determining the fair market value of the Property, and determines that it is prudent to go forward with the sale; (d) RMI represents the interests of the Plan at the time the sale is consummated; (e) The Plan pays no real estate fees or commissions in connection with the sale; (f) The Union reimburses the Plan for 50% of the costs of the exemption application and pays all recording charges, attorney's fees, title insurance premiums, and any transfer fees or taxes; and (g) The terms of the sale are no less favorable to the Plan than the terms the Plan would receive under similar circumstances in an arm's length transaction with an unrelated party. Written Comments In the notice of proposed exemption (the Notice), the Department invited all interested persons to submit written comments within 40 days of the publication, on November 26, 2014, of the Notice in the Federal Register. All comments were due by January 5, 2015. During the comment period, the Department received no comments from interested persons. Accordingly, after giving full consideration to the entire record, the Department has decided to grant the exemption. The complete application file (Exemption Application No. L-11775) is available for public inspection in the Public Disclosure Room of the Employee Benefits Security Administration, Room N-1515, U.S. Department of Labor, 200 Constitution Avenue NW., Washington, DC 20210. For a more complete statement of the facts and representations supporting the Department's decision to grant this exemption, refer to the Notice published in the Federal Register on November 26, 2014 at 79 FR 70645. For Further Information Contact: Mrs. Blessed Chuksorji-Keefe of the Department at (202) 693-8567. (This is not a toll-free number.) [[Page 19691]] Local 268, Sheet Metal Workers International Association, AFL-CIO (the Union) Located in Caseyville, IL [Prohibited Transaction Exemption 2015-05; Application No. L-11794] Exemption The restrictions of sections 406(a)(1)(A), 406(a)(1)(D), 406(b)(1), and 406(b)(2) of the Act, shall not apply to the sale by the Fund of certain improved real property located at 2727 N. 89th Street, Caseyville, IL 62232 (the Building), to the Union (the Sale), provided that the following conditions have been met: (a) The Sale is a one-time transaction for cash; (b) At the time of the Sale, the Fund receives the greater of either: (1) $110,226.48; or (2) the fair market value of the Building, as established by a qualified independent appraiser (the Appraiser), as described in condition (c), as of the date of Sale; (c) Before the date of Sale, an Appraiser who satisfies the Department's definition of ``qualified independent appraiser'' will be retained by the Independent Fiduciary on behalf of the Fund without any involvement of the Union or any other party to the covered transactions or any planned future transactions, and will conduct a full, independent Appraisal (the Appraisal) of the Building for purposes of the Sale that complies in all respects with applicable appraisal standards; (d) A qualified independent fiduciary (the Independent Fiduciary), acting on behalf of the Fund, represents the Fund's interests for all purposes with respect to the Sale, and: (1) Determines, among other things, that it is in the best interest of the Fund to proceed with the Sale; and (2) reviews and approves the purchase price and methodology used by the Appraiser in its Appraisal; (e) The Fund pays no fees, commissions or other expenses associated with the Sale; and (f) The terms and conditions of the Sale are at least as favorable to the Fund as those obtainable in an arm's-length transaction with an unrelated third party. Written Comments The Department invited all interested persons to submit written comments and/or requests for a public hearing with respect to the notice of proposed exemption, published on December 30, 2014, at 79 FR 78486. All comments and requests for hearing were due by February 13, 2015. During the comment period, the Department received no comments and no requests for a hearing from interested persons. Accordingly, after giving full consideration to the entire record, the Department has decided to grant the exemption. The complete application file (Application No. L-11794), including all supplemental submissions received by the Department, is available for public inspection in the Public Disclosure Room of the Employee Benefits Security Administration, Room N-1515, U.S. Department of Labor, 200 Constitution Avenue NW., Washington, DC 20210. 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 30, 2014, at 79 FR 78486. For Further Information Contact: Mr. Scott Ness of the Department, telephone (202) 693-8561. (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) 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 the application accurately describes all material terms of the transaction which is the subject of the exemption. Signed at Washington, DC, this 7th day of April, 2015. Lyssa E. Hall, Director of Exemption Determinations, Employee Benefits Security Administration, U.S. Department of Labor. [FR Doc. 2015-08301 Filed 4-10-15; 8:45 am] BILLING CODE 4510-29-P
![Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Notices 19687
www.usdoj.gov/enrd/Consent_ submit comments on the requested Plan, provided that the following
Decrees.html. We will provide a paper exemption to the Department. In conditions are satisfied:
copy of the Joint Stipulation of addition the notice stated that any (a) The Sale is a one-time transaction
Settlement upon written request and interested person might submit a for cash;
payment of reproduction costs. Please written request that a public hearing be (b) As consideration, the Plan receives
mail your request and payment to: held (where appropriate). The applicant $3,100,000 or the fair market value of
Consent Decree Library, U.S. DOJ– has represented that it has complied the Property as determined by a
ENRD, P.O. Box 7611, Washington, DC with the requirements of the notification qualified, independent appraiser (the
20044–7611. to interested persons. No requests for a Appraiser) in a written appraisal of the
Please enclose a check or money order hearing were received by the Property, which is updated on the date
for $2.75 (25 cents per page Department. Public comments were of Sale;
reproduction costs for 11 pages) payable received by the Department as described (c) The Plan pays no commissions,
to the United States Treasury. in the granted exemption. costs or fees with respect to the Sale;
The notice of proposed exemption (d) The terms and conditions of the
Henry S. Friedman,
was issued and the exemption is being Sale are at least as favorable to the Plan
Assistant Chief, Environmental Enforcement as those obtainable in an arm’s length
Section, Environment and Natural Resources granted solely by the Department
Division. because, effective December 31, 1978, transaction with an unrelated party;
section 102 of Reorganization Plan No. (e) The Sale has been reviewed and
[FR Doc. 2015–08391 Filed 4–10–15; 8:45 am]
4 of 1978, 5 U.S.C. App. 1 (1996), approved by a qualified, independent
BILLING CODE 4410–15–P
transferred the authority of the Secretary fiduciary, who, among other things: has
of the Treasury to issue exemptions of reviewed and approved the
the type proposed to the Secretary of methodology used by the Appraiser and
DEPARTMENT OF LABOR has ensured that the appraisal
Labor.
methodology was properly applied in
Employee Benefits Security Statutory Findings determining the fair market value of the
Administration
In accordance with section 408(a) of Property; and has determined that it is
Exemptions From Certain Prohibited the Act and/or section 4975(c)(2) of the prudent to go forward with the Sale.
Transaction Restrictions Code and the procedures set forth in 29 Written Comments
CFR part 2570, subpart B (76 FR 66637,
AGENCY: Employee Benefits Security 66644, October 27, 2011) 1 and based In the Notice of Proposed Exemption
Administration, Labor. upon the entire record, the Department (the Notice), the Department invited all
ACTION: Grant of Individual Exemptions. makes the following findings: interested persons to submit written
(a) The exemption is administratively comments and requests for a hearing on
SUMMARY: This document contains the proposed exemption within 45 days
exemptions issued by the Department of feasible;
(b) The exemption is in the interests of the publication, on November 26,
Labor (the Department) from certain of 2014, of the Notice in the Federal
the prohibited transaction restrictions of of the plan and its participants and
beneficiaries; and Register. All comments and requests for
the Employee Retirement Income a hearing were due by January 10, 2015.
Security Act of 1974 (ERISA or the Act) (c) The exemption is protective of the
rights of the participants and During the comment period, the
and/or the Internal Revenue Code of Department received one written
1986 (the Code). This notice includes beneficiaries of the plan.
comment with respect to the Notice that
the following: 2015–01, The United The United Association of Journeymen was submitted by a Plan participant (the
Association of Journeymen and and Apprentices of The Plumbers and Commenter), and no requests for a
Apprentices of the Plumbers and Pipefitters Local Union No. 189 Pension hearing. In addition, the Applicant
Pipefitters Local Union No. 189 Pension Plan, as Amended (the Plan or the informed the Department of an updated
Plan, D–11750; 2015–02, The Camco Applicant) Located in Columbus, Ohio appraisal of the Property, which was
Financial & Subsidiaries Salary Savings [Prohibited Transaction Exemption later submitted to the Department and
Plan and Huntington Bancshares, Inc., 2015–01; Exemption Application No. D– required the Department’s modification
D–11751; 2015–03, Teamsters Local 11750] to the operative language of the Notice.
Union No. 727 Pension Fund, D–11770; Discussed below are the comment and
2015–04, Craftsman Independent Union Exemption
the Department’s revision to the Notice.
Local #1 Health, Welfare & The restrictions of section
Hospitalization Trust Fund, L–11775; 406(a)(1)(A) and (D) and section The Comment
and 2015–05, Local 268, Sheet Metal 406(b)(1) and (b)(2) of the Act and the The Commenter asked the Department
Workers International Association, sanctions resulting from the application to deny the proposed exemption, stating
AFL–CIO, L–11794. of section 4975(c)(1)(A), (D) and (E) of that the proposed transaction is an
SUPPLEMENTARY INFORMATION: A notice the Code, shall not apply to the sale attempt by the employers to put the
was published in the Federal Register of (Sale) of certain improved real property financial burden of a pension plan ‘‘in
the pendency before the Department of (the Property) by the Plan to Local #189 the yellow’’ on the backs of Union
a proposal to grant such exemption. The of the United Association of members, instead of raising the Plan’s
notice set forth a summary of facts and Journeymen and Apprentices of the contribution rate.
Plumbing and Pipefitting Industry of the
mstockstill on DSK4VPTVN1PROD with NOTICES
representations contained in the In response, the Applicant states that
application for exemption and referred United States and Canada (the Union), the comment is factually inaccurate.
interested persons to the application for a party in interest with respect to the First, according to the Applicant, the
a complete statement of the facts and Commenter incorrectly states that the
1 The Department has considered exemption
representations. The application has Plan is ‘‘in the yellow.’’ To clarify the
applications received prior to December 27, 2011
been available for public inspection at under the exemption procedures set forth in 29 CFR
meaning of this actuarial phrase, the
the Department in Washington, DC. The part 2570, subpart B (55 FR 32836, 32847, August Applicant represents that plans are
notice also invited interested persons to 10, 1990). considered ‘‘in the green zone’’ when
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![19688 Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Notices
the funded percentage is 80% or higher; in January 2008 (the 2008 Offer). The Accordingly, after giving full
‘‘in the red zone’’ when the funded Applicant represents that although the consideration to the entire record,
percentage is below 65%; and ‘‘in the 2008 Offer exceeds the cash price including the written comment and the
yellow zone’’ when the funded payable by the Union to the Plan (i.e., Department’s modification of the
percentage is between 65% and 80%. $3,100,000) by $210,000, the net Notice, the Department has decided to
The Applicant represents that the Plan’s proceeds the Plan will receive from the grant the exemption. The complete
actuary has certified that the Plan has Union will be significantly higher than application file (D–11750), and all
been ‘‘in the green zone’’ for each plan what the Plan would have received from supplemental submissions received by
year since the plan year beginning April the 2008 Offer because of the covenant the Department, are available for public
1, 2011. Further, the Applicant risks, commissions, and contingencies inspection in the Public Disclosure
represents that the actual funded attached to the 2008 Offer. According to Room of the Employee Benefits Security
percentages, as certified by the actuary the Applicant, the 2008 Offer was Administration, Room N–1515, U.S.
each year, have been as follows: contingent on the purchaser’s receipt of: Department of Labor, 200 Constitution
(1) satisfactory soil tests and Avenue NW., Washington, DC 20210.
Plan year be- PPA Funded Per- environmental reports that the premises For a more complete statement of
ginning April centage certified Zone were free from environmental facts and representations supporting the
1 by actuary
contamination; 2 (2) satisfactory Department’s decision to grant this
2014 ............. 90.2% Green engineering and economic feasibility exemption, refer to the Notice published
2013 ............. 85.0% Green reports regarding the ‘‘economic in the Federal Register at 79 FR 70624
2012 ............. 83.5% Green viability of the purchaser’s project;’’ (3) (November 26, 2014).
2011 ............. 80.4% Green zoning approval; 3 (4) a survey of the FOR FURTHER INFORMATION CONTACT:
2010 ............. 74.2% Yellow Property by an engineer or surveyor Ms. Anna Mpras Vaughan of the
acceptable to the purchaser at the Plan’s Department at (202) 693–8565. (This is
Second, the Applicant states that expense; and (5) an affidavit from the not a toll-free number.)
whether the Plan holds the illiquid asset Plan that it had ‘‘no knowledge of the
(i.e., the Property) or the liquid The Camco Financial & Subsidiaries
dumping, storing or past or present Salary Savings Plan (the Plan) and
investment (i.e., the cash proceeds that existence of any hazardous waste or
can be reinvested), the proposed Huntington Bancshares, Inc.
products on the’’ Property.4 The (Huntington) Located in Cambridge, OH
transaction would not change the Applicant represents that the Plan did
funded status of the Plan and, therefore, and Columbus, OH [Prohibited
not believe that it would be able to Transaction Exemption 2015–02;
would not affect whether or not the per satisfy these contingencies. Further, the
hour contribution rate would need to be Application No. D–11751]
Applicant represents that even if the
increased. Plan could have satisfied the Exemption
Third, and lastly, the Applicant states contingencies, it would have done so at
that the proposed exemption was not Section I: Transactions
a significant expense.
initiated by the employers, but at the The restrictions of sections
request of the Union to allow it to Modification of the Notice 406(a)(1)(A), 406(a)(1)(E), 406(a)(2),
purchase the Property. The Applicant On January 5, 2015, the Applicant 406(b)(1), 406(b)(2), and 407(a)(1)(A) of
explains that the Union desires to informed the Department of an appraisal the Act and the sanctions resulting from
purchase the Property for the following report dated December 16, 2014 (the the application of section 4975 of the
reasons: (1) The Plumbers and December 2014 Appraisal), that had Code, by reason of sections
Pipefitters Local #189 Joint been prepared by Thomas J. Horner, 4975(c)(1)(A) and (E) of the Code,5 shall
Apprenticeship and Journeyman MAI, SRA, ASA, the Appraiser. On not apply to the acquisition and holding
Training Committee, which leases space December 2, 2014, the Appraiser placed of certain warrants (the Warrants) by the
in the building (the Building) located on the fair market value of the Property at individually-directed account(s) (the
the Property, needs more teaching $3,100,000. Account(s)) of certain participant(s) in
space, but the Plan is unwilling to Because the fair market value of the the Plan in connection with an offering
expand the Building because it has Property as reported in the December (the Offering) of shares of common stock
determined that such an investment 2014 Appraisal represents an increase of (the Stock) of Camco Financial
would be imprudent since the current $200,000 over the $2,900,000 fair Corporation (Camco), the sponsor of the
fair market value of the Building is market value reported by the Appraiser Plan and a party in interest with respect
based on the redevelopment value of the as of January 27, 2014 in an appraisal to the Plan.
land; (2) there is a significant cost report dated January 31, 2014, the Section II: Conditions
associated with moving the teaching Department has modified condition (b)
equipment that is currently installed in of the exemption by replacing the (a) The Accounts acquired the
the Building to another location; and (3) ‘‘$2,900,000’’ value with ‘‘$3,100,000’’ Warrants in connection with the
the Union desires to retain use of the to reflect the most recent valuation of exercise of subscription rights (the
current facility even though the Plan has the Property. Rights) to purchase Stock by the Plan’s
received two unsolicited offers to directed trustee (the Directed Trustee)
purchase the Property. 2 The Applicant represents that given the training on behalf of Plan participants;
With respect to the two unsolicited with welding supplies and medical gases, the Plan (b) Each stockholder, including each
had significant concern about whether a clean of the Accounts holding Stock on behalf
mstockstill on DSK4VPTVN1PROD with NOTICES
offers, the Applicant represents that it environmental report would be obtainable.
received an unsolicited offer of of Plan participants, received the same
3 The Applicant represents that current zoning
$2,700,000 (with required covenants, a limitations significantly restrict the potential uses
proportionate number of Rights based
commission payable, and significant of the Property. on the number of shares of Stock held
4 As mentioned in the preceding footnote, the
contingencies) in January 2014 and an
Applicant represents that because of the use and 5 For purposes of this exemption, references to
earlier unsolicited offer of $3,310,000 storage of various chemicals on the Property, it was specific provisions of Title I of the Act, unless
(with required covenants, a commission not clear whether the Plan could have given such otherwise specified, refer also to the corresponding
payable, and significant contingencies) an affidavit. provisions of the Code.
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![Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Notices 19689
as of July 29, 2012 (the Record Date), Teamsters Local Union No. 727 Pension for the management and operation of the
and the same proportionate number of Fund (the Fund) Located in Chicago, LLC and the Property; and (5) selects the
Warrants based on the number of Rights Illinois [Prohibited Transaction Independent Appraiser and verifies the
exercised during the Offering; Exemption 2015–03; Application No. methodology used by the Independent
(c) The Plan participant whose D–11770] Appraiser in determining the fair market
Exemption value of the Property for all purposes
Account received the Warrants made, or
under this proposed exemption;
will make, all decisions with respect to Section I. Covered Transactions (e) An Independent Appraiser, who is
the holding and exercise of such selected by the Independent Fiduciary,
Warrants; The restrictions of sections
406(a)(1)(A) and (D) of the Employee establishes the fair market value of the
(d) The Plan did not pay, nor will it Retirement Income Security Act of 1974, Property for purposes of the Sale and
pay, any brokerage fees, commissions, as amended (ERISA), and the sanctions the Put Right, using a methodology
or other fees or expenses to any related resulting from the application of section approved by the Independent Fiduciary;
broker in connection with the 4975 of the Internal Revenue Code of (f) The Fund does not pay any
acquisition, holding, and exercise of the 1986, as amended (the Code), by reason commissions, costs or other expenses in
Rights or Warrants; of section 4975(c)(1)(A) and (D) of the connection with the Sale and Put Right,
Code, shall not apply to: (1) The sale other than the legal fees of the Fund’s
(e) The acquisition of the Rights by counsel, the services of the Independent
the Accounts resulted from an (the Sale) by the Fund of three separate
25 percent interests in 1300 Higgins Fiduciary and the services of the
independent corporate act of Camco; Independent Appraiser;
and Road LLC (the LLC), a limited liability
(g) Since its acquisition of the
company of which the Fund is the sole
(f) The Rights and Warrants were Property, the Fund’s ownership interest
member (each, an LLC Interest, and
acquired pursuant to and in accordance in the Property has constituted five
collectively, the LLC Interests),
with, provisions under the Plan for percent or less of the Fund’s assets, and
respectively, to each of Teamsters Local
individually directed investments of the immediately after the Sale the Fund’s
Union No. 700 (Local 700), Teamsters
Accounts holding Stock on behalf of ownership interest in the Property will
Local Union No. 727 (Local 727), and
Plan participants. be less than two percent of the Fund’s
the Teamsters Joint Council No. 25 (the
assets;
Effective Date: This exemption is Joint Council, and together with Local (h) No member of the LLC shall,
effective from November 1, 2012, until 700 and Local 727, the Unions); and (2) directly or indirectly, without the
the Warrants are exercised or expire. the subsequent Sale of the Fund’s approval of the Independent Fiduciary:
remaining 25 percent LLC interest (the (1) Act for or on behalf of the LLC; (2)
Written Comments Fund’s LLC Interest) to the Unions due transact any business in the name of the
to the exercise by the Fund of a put right LLC; or (3) sign documents for or
The Department invited all interested
to sell the Fund’s LLC Interest to the otherwise bind the LLC;
persons to submit written comments
Unions (the Put Right), provided that (i) No LLC Interests shall be
and/or requests for a public hearing the conditions in Section II are satisfied.
with respect to the notice of proposed transferable by the Unions prior to the
exemption, published on November 26, Section II. Conditions for Relief exercise of the Put Right by the Fund,
2014, at 79 FR 70628. All comments and without the approval of the Independent
(a) The Fund receives from each of the Fiduciary;
requests for hearing were due by Unions, as consideration for the Sale of (j) Any trustee of the Fund must
January 10, 2015. During the comment the LLC Interests, a cash amount equal recuse himself or herself from any vote
period, the Department received no to 25 percent of the greater of: (1) The regarding the termination or removal of
comments and no requests for a hearing original purchase price paid by the the Independent Fiduciary for the Fund
from interested persons. Accordingly, Fund, or (2) the fair market value of the if he or she is an officer (or a relative
after giving full consideration to the O’Hare Corporate Center in Park Ridge, of an officer as defined in Section III) of
entire record, the Department has Illinois (the Property), determined on any of the Unions;
decided to grant the exemption. The the date of the Sale by an Independent (k) The terms and conditions of the
complete application file (Application Appraiser; Sale and the Put Right are at least as
No. D–11751), including all (b) The Fund, upon exercise of the Put favorable to the Fund as those
supplemental submissions received by Right, receives from the Unions a one- obtainable in an arm’s-length
the Department, is available for public time aggregate cash amount equal to 25 transaction with an unrelated third
inspection in the Public Disclosure percent of the greater of: (1) The original party; and
Room of the Employee Benefits Security purchase price paid by the Fund, or (2) (l) The Sale or Put Right is not part
Administration, Room N–1515, U.S. the fair market value of the Property on of an arrangement, agreement, or
Department of Labor, 200 Constitution the date of exercise of the Put Right, as understanding designed to benefit a
determined by an Independent party in interest with respect to the
Avenue NW., Washington, DC 20210.
Appraiser; Fund.
For a more complete statement of the (c) The Sale and the exercise of the
facts and representations supporting the Put Right are each one-time transactions Section III. Definitions
Department’s decision to grant this for cash; (a) The term ‘‘relative’’ is a relative as
exemption, refer to the notice of
mstockstill on DSK4VPTVN1PROD with NOTICES
(d) The Independent Fiduciary: (1) that term is defined in section 3(15) of
proposed exemption published on Analyzes and approves the terms of the ERISA, and also includes a brother,
November 26, 2014, at 79 FR 70628. Sale and Put Right; (2) ensures that the sister, and a spouse of a brother or
terms of the Sale and Put Right and the sister;
FOR FURTHER INFORMATION CONTACT: Ms.
conditions of the exemption are met; (3) (b) The term ‘‘Independent Fiduciary’’
Jennifer Brown of the ((-Department, means Intercontinental Real Estate
has sole responsibility for the exercise
telephone (202) 693–83520. (This is not of the Put Right on behalf of the Fund; Corporation (Intercontinental) or
a toll-free number.) (4) has sole responsibility and authority another fiduciary of the Plan who (1) is
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![19690 Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Notices
independent or unrelated to the Unions Effective Date: This exemption is with respect to the Plan, provided that
and their affiliates and has the effective as of its date of publication in the following conditions are satisfied:
appropriate training, experience, and the Federal Register. (a) The sale is a one-time transaction
facilities to act on behalf of the Plan for cash;
Written Comments (b) The sales price for the Property is
regarding the covered transactions in
accordance with the fiduciary duties The Department invited all interested the greater of either: (1) $250,000; or (2)
and responsibilities prescribed by persons to submit written comments the fair market value of the Property as
ERISA (including, if necessary, the and/or requests for a public hearing established by qualified independent
responsibility to seek the counsel of with respect to the notice of proposed appraisers (the Appraisers) in an
knowledgeable advisors to assist in its exemption (the Notice), published on appraisal of the Property that is updated
compliance with ERISA), and (2) if December 30, 2014, at 79 FR 78482. All on the date of the sale;
relevant, succeeds Intercontinental in its comments and requests for hearing were (c) RMI, as the qualified independent
capacity as Fiduciary to the Plans in due by February 13, 2015. During the fiduciary, reviews and approves the
connection with the transactions comment period, the Department methodology used by the Appraisers to
described herein. The Independent received several phone inquiries that ensure that such methodology is
Fiduciary will not be deemed to be generally concerned matters outside the properly applied in determining the fair
independent of and unrelated to the scope of the exemption. Furthermore, market value of the Property, and
Unions and their affiliates if: (i) Such the Department received no written determines that it is prudent to go
Independent Fiduciary directly or comments and no requests for a hearing forward with the sale;
indirectly controls, is controlled by or is from interested persons. However, the (d) RMI represents the interests of the
under common control, with the Unions Department has made one technical Plan at the time the sale is
and their affiliates; (ii) such correction to the Notice, as described consummated;
Independent Fiduciary directly or below. (e) The Plan pays no real estate fees
indirectly receives any compensation or or commissions in connection with the
The Department’s Technical Correction sale;
other consideration in connection with
any transaction described in this The Department notes that the Notice (f) The Union reimburses the Plan for
proposed exemption other than for incorrectly identifies the Fund as 50% of the costs of the exemption
acting as independent fiduciary in ‘‘Teamsters Union Local No. 727 application and pays all recording
connection with the transactions Pension Fund (the Fund).’’ However, charges, attorney’s fees, title insurance
described herein, provided that the this notice correctly identifies the Fund premiums, and any transfer fees or
amount or payment of such as ‘‘Teamsters Local Union No. 727 taxes; and
Pension Fund (the Fund).’’ (g) The terms of the sale are no less
compensation is not contingent upon, or
After giving full consideration to the favorable to the Plan than the terms the
in any way affected by, the Independent
entire record, the Department has Plan would receive under similar
Fiduciary’s ultimate decision; and (iii)
decided to grant the exemption. The circumstances in an arm’s length
the annual gross revenue received by
complete application file (Application transaction with an unrelated party.
the Independent Fiduciary, during any
year of its engagement, from the Unions No. D–11770), including all Written Comments
and their affiliates, exceeds two percent supplemental submissions received by
In the notice of proposed exemption
(2%) of the Independent Fiduciary’s the Department, is available for public
(the Notice), the Department invited all
annual gross revenue from all sources inspection in the Public Disclosure
interested persons to submit written
(for federal income tax purposes) for its Room of the Employee Benefits Security
comments within 40 days of the
prior tax year; Administration, Room N–1515, U.S.
publication, on November 26, 2014, of
(c) The term ‘‘Independent Appraiser’’ Department of Labor, 200 Constitution
the Notice in the Federal Register. All
means an individual or entity meeting Avenue NW., Washington, DC 20210.
comments were due by January 5, 2015.
the definition of a ‘‘Qualified For a more complete statement of the
During the comment period, the
Independent Appraiser’’ under 29 CFR facts and representations supporting the
Department received no comments from
2570.31(i) retained to determine, on Department’s decision to grant this
interested persons.
behalf of the Plans, the fair market value exemption, refer to the notice of Accordingly, after giving full
of the Property as of the date of the Sale, proposed exemption published on consideration to the entire record, the
and may be the Independent Fiduciary, December 30, 2014, at 79 FR 78482. Department has decided to grant the
provided it satisfies the definition of For Further Information Contact: Mr. exemption. The complete application
Independent Appraiser herein; Scott Ness of the Department, telephone file (Exemption Application No. L–
(202) 693–8561. (This is not a toll-free 11775) is available for public inspection
(d) The term ‘‘affiliate’’ of a person
number.) in the Public Disclosure Room of the
includes:
(1) Any person directly or indirectly Craftsman Independent Union Local #1 Employee Benefits Security
through one or more intermediaries, Health, Welfare & Hospitalization Trust Administration, Room N–1515, U.S.
controlling, controlled by, or under Fund (the Plan) Cape Girardeau, Department of Labor, 200 Constitution
common control with, the person; Missouri [Prohibited Transaction Avenue NW., Washington, DC 20210.
Exemption 2015–04; Exemption For a more complete statement of the
(2) Any officer, director, employee, facts and representations supporting the
relative, or partner of the person; or Application No. L–11775]
mstockstill on DSK4VPTVN1PROD with NOTICES
Department’s decision to grant this
(3) Any corporation or partnership of Exemption
exemption, refer to the Notice published
which such person is an officer; and The restrictions of section in the Federal Register on November 26,
(e) The term ‘‘control’’ means the 406(a)(1)(A) and (D) of the Act shall not 2014 at 79 FR 70645.
power to exercise a controlling apply to the sale by the Plan of a parcel For Further Information Contact: Mrs.
influence over the management or of improved real property (the Property) Blessed Chuksorji-Keefe of the
policies of a person other than an to the Craftsman Independent Union Department at (202) 693–8567. (This is
individual. Local #1 (the Union), a party in interest not a toll-free number.)
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![Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Notices 19691
Local 268, Sheet Metal Workers after giving full consideration to the Signed at Washington, DC, this 7th day of
International Association, AFL–CIO entire record, the Department has April, 2015.
(the Union) Located in Caseyville, IL decided to grant the exemption. The Lyssa E. Hall,
[Prohibited Transaction Exemption complete application file (Application Director of Exemption Determinations,
2015–05; Application No. L–11794] No. L–11794), including all Employee Benefits Security Administration,
supplemental submissions received by U.S. Department of Labor.
Exemption
the Department, is available for public [FR Doc. 2015–08301 Filed 4–10–15; 8:45 am]
The restrictions of sections
inspection in the Public Disclosure BILLING CODE 4510–29–P
406(a)(1)(A), 406(a)(1)(D), 406(b)(1), and
Room of the Employee Benefits Security
406(b)(2) of the Act, shall not apply to
Administration, Room N–1515, U.S.
the sale by the Fund of certain improved DEPARTMENT OF LABOR
real property located at 2727 N. 89th Department of Labor, 200 Constitution
Street, Caseyville, IL 62232 (the Avenue NW., Washington, DC 20210. Employment and Training
Building), to the Union (the Sale), For a more complete statement of the Administration
provided that the following conditions facts and representations supporting the
have been met: Department’s decision to grant this Notice of Determinations Regarding
(a) The Sale is a one-time transaction exemption, refer to the notice of Eligibility To Apply for Worker
for cash; proposed exemption published on Adjustment Assistance and Alternative
(b) At the time of the Sale, the Fund December 30, 2014, at 79 FR 78486. Trade Adjustment Assistance
receives the greater of either: (1)
For Further Information Contact: Mr. In accordance with Section 223 of the
$110,226.48; or (2) the fair market value
Scott Ness of the Department, telephone Trade Act of 1974, as amended (19
of the Building, as established by a
(202) 693–8561. (This is not a toll-free U.S.C. 2273) the Department of Labor
qualified independent appraiser (the
number.) herein presents summaries of
Appraiser), as described in condition
determinations regarding eligibility to
(c), as of the date of Sale; General Information apply for trade adjustment assistance for
(c) Before the date of Sale, an
The attention of interested persons is workers (TA–W) number and alternative
Appraiser who satisfies the
trade adjustment assistance (ATAA) by
Department’s definition of ‘‘qualified directed to the following:
(TA–W) number issued during the
independent appraiser’’ will be retained (1) The fact that a transaction is the period of March 16, 2015 through March
by the Independent Fiduciary on behalf subject of an exemption under section 20, 2015.
of the Fund without any involvement of 408(a) of the Act and/or section In order for an affirmative
the Union or any other party to the 4975(c)(2) of the Code does not relieve determination to be made for workers of
covered transactions or any planned a fiduciary or other party in interest or a primary firm and a certification issued
future transactions, and will conduct a disqualified person from certain other regarding eligibility to apply for worker
full, independent Appraisal (the provisions to which the exemption does adjustment assistance, each of the group
Appraisal) of the Building for purposes not apply and the general fiduciary eligibility requirements of Section
of the Sale that complies in all respects responsibility provisions of section 404 222(a) of the Act must be met.
with applicable appraisal standards;
of the Act, which among other things I. Section (a)(2)(A) all of the following
(d) A qualified independent fiduciary
require a fiduciary to discharge his must be satisfied:
(the Independent Fiduciary), acting on
behalf of the Fund, represents the duties respecting the plan solely in the A. a significant number or proportion
Fund’s interests for all purposes with interest of the participants and of the workers in such workers’ firm, or
respect to the Sale, and: (1) Determines, beneficiaries of the plan and in a an appropriate subdivision of the firm,
among other things, that it is in the best prudent fashion in accordance with have become totally or partially
interest of the Fund to proceed with the section 404(a)(1)(B) of the Act; nor does separated, or are threatened to become
Sale; and (2) reviews and approves the it affect the requirement of section totally or partially separated;
purchase price and methodology used 401(a) of the Code that the plan must B. the sales or production, or both, of
by the Appraiser in its Appraisal; operate for the exclusive benefit of the such firm or subdivision have decreased
(e) The Fund pays no fees, employees of the employer maintaining absolutely; and
commissions or other expenses the plan and their beneficiaries; C. increased imports of articles like or
associated with the Sale; and (2) These exemptions are directly competitive with articles
(f) The terms and conditions of the supplemental to and not in derogation produced by such firm or subdivision
Sale are at least as favorable to the Fund of, any other provisions of the Act and/ have contributed importantly to such
as those obtainable in an arm’s-length workers’ separation or threat of
or the Code, including statutory or
transaction with an unrelated third separation and to the decline in sales or
administrative exemptions and
party. production of such firm or subdivision;
transactional rules. Furthermore, the
or
Written Comments fact that a transaction is subject to an
II. Section (a)(2)(B) both of the
administrative or statutory exemption is
The Department invited all interested following must be satisfied:
not dispositive of whether the
persons to submit written comments A. a significant number or proportion
transaction is in fact a prohibited
and/or requests for a public hearing of the workers in such workers’ firm, or
transaction; and
mstockstill on DSK4VPTVN1PROD with NOTICES
with respect to the notice of proposed an appropriate subdivision of the firm,
exemption, published on December 30, (3) The availability of these have become totally or partially
2014, at 79 FR 78486. All comments and exemptions is subject to the express separated, or are threatened to become
requests for hearing were due by condition that the material facts and totally or partially separated;
February 13, 2015. During the comment representations contained in the B. there has been a shift in production
period, the Department received no application accurately describes all by such workers’ firm or subdivision to
comments and no requests for a hearing material terms of the transaction which a foreign country of articles like or
from interested persons. Accordingly, is the subject of the exemption. directly competitive with articles which
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Document Created: 2015-12-18 11:21:48
Document Modified: 2015-12-18 11:21:48
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Grant of Individual Exemptions. | |
| Dates | This exemption is effective from November 1, 2012, until the Warrants are exercised or expire. | |
| Contact | Ms. Anna Mpras Vaughan of the Department at (202) 693-8565. (This is not a toll-free number.) | |
| FR Citation | 80 FR 19687 |
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