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EBSA
Notices
Prohibited Transaction Exemptions and Grant of Individual Exemptions involving: D-11428, Heico Holding Inc. Pension Plan (the Plan), 2009-04; D-11450, Brewster Dairy, Inc. 401(k) Profit Sharing Plan (the Plan)
[ 2/25/2009]
[ PDF]
FR Doc E9-3998
[Federal Register: February 25, 2009 (Volume 74, Number 36)]
[Notices]
[Page 8570-8571]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25fe09-92]
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DEPARTMENT OF LABOR
Employee Benefits Security Administration
Prohibited Transaction Exemptions and Grant of Individual
Exemptions involving: D-11428, Heico Holding Inc. Pension Plan (the
Plan), 2009-04; D-11450, Brewster Dairy, Inc. 401(k) Profit Sharing
Plan (the Plan)
AGENCY: Employee Benefits Security 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
(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.
Heico Holding Inc. Pension Plan (the Plan), Located in Downers Grove,
IL
[Prohibited Transaction Exemption 2009-04; Exemption Application
Number: D-11428]
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 of the Code, by reason of section
4975(c)(1)(A), (D), and (E) of the Code, shall not apply to the sale by
the Plan of a non-marketable limited partnership interest (the
Interest) in Trident Equity Fund, II, L.P. (the Partnership) to Heico
Holding Inc. (the Applicant), 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 Plan pays no commissions, fees or other expenses in
connection with the sale;
(c) The terms and conditions of the sale are at least as favorable
as those obtainable in an arm's length transaction with an unrelated
third party;
(d) As a result of the sale, the Plan receives the greater of: (i)
$1,050,000; (ii) The value of the Interest as determined by the General
Partner of the Partnership and reported on the most recent quarterly
account statements of the Partnership available at the time of the
sale; (iii) The fair market value of the Interest as determined on the
date of the sale by a qualified, independent appraiser; or (iv) The
total amount of the Plan's contributions to the Partnership made on or
after January 21, 2005 (i.e., the Plan's investment cost basis in the
Interest); and
(e) Upon Plan termination, it is determined that the Plan is
overfunded.
For a complete statement of the facts and representations
supporting the Department's decision to grant this exemption, refer to
the Notice of
[[Page 8571]]
Proposed Exemption published on November 20, 2008 at 73 FR 70372.
For Further Information Contact: Mr. Mark Judge of the Department,
telephone (202) 693-8339. (This is not a toll-free number.)
Brewster Dairy, Inc. 401(k) Profit Sharing Plan (the Plan), Located in
Brewster, OH
[Prohibited Transaction Exemption 2009-05; Exemption Application No. D-
11450]
Exemption
The restrictions of sections 406(a)(1)(A) and (D), 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), (D) and (E) of the Code, shall not apply to the November
18, 2008 sale (the Sale) by the Plan of 2.5 limited partnership units
(the Units) in the Heartland California Clayton Limited Partnership
(the Partnership) to Brewster Dairy, Inc. (Brewster), the Plan's
sponsor and a party in interest with respect to the Plan, for the
greater of: (1) $57,000; (2) the net proceeds for the Units in the
event the Partnership sells its real estate (the Property) to a third
party; or (3) the net proceeds from foreclosure for the Units in the
event the Property is foreclosed to pay back real estate taxes,
provided the following conditions are satisfied:
(a) The Sale of the Units was a one-time transaction for cash;
(b) The Plan paid no commissions, fees or other expenses in
connection with the Sale;
(c) The terms of the transaction were at least as favorable to the
Plan as those the Plan could obtain in a similar transaction with an
unrelated party;
(d) The fair market value of the Units on the date of the Sale was
determined by a qualified independent appraiser;
(e) The Plan fiduciaries determined whether it was in the best
interest of the Plan to go forward with the Sale, reviewed and approved
the methodology used in the appraisal that was relied upon, and ensured
that the methodology was applied by a qualified, independent appraiser
in determining the fair market value of the Units as of the date of the
Sale; and
(f) The proceeds from the Sale of the Units to Brewster will be
allocated only to the participants who are defined in the Consent Order
and Judgment (File No. 5:98CV744, July 1, 1999) entered by the United
States District Court for the Northern District of Ohio Eastern
Division (the Court).
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 November 20,
2008 at 73 FR 70375.
Effective Date: This exemption is effective November 18, 2008.
Written Comments and Hearing Requests: The Department received one
written comment and no hearing requests with respect to the Notice. The
one comment letter was submitted by Brewster. In its letter, Brewster
informed the Department that the subject Sale of the 2.5 Units was
consummated on November 18, 2008, and Brewster requested that the
exemption be made retroactive to that date. The Sale price was $57,000.
Brewster represented that the transaction had to be completed prior to
the granting of the exemption by the Department to facilitate the sale
of the Property by the Partnership's General Partners prior to the
county filing a foreclosure action for real estate taxes unpaid by the
Partnership. Brewster further represented that it will follow the terms
of the Notice in all matters including allocation and adjustment of the
purchase price if the Units previously owned by the Plan are sold by
Brewster for more than $57,000 (or bring more than $57,000 in proceeds
from foreclosure).
The Department has considered, the entire record, including the
comment letter submitted by Brewster and has determined that the
subject transaction satisfied the criteria of section 408(a) of the Act
on the date of the transaction. Accordingly, the Department herein
grants the exemption, effective November 18, 2008.
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 19th day of February, 2009.
Ivan Strasfeld,
Director of Exemption Determinations, Employee Benefits Security
Administration, U.S. Department of Labor.
[FR Doc. E9-3998 Filed 2-24-09; 8:45 am]
BILLING CODE 4510-29-P
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