Approval of Exemption From the Bond/Escrow Requirement Relating to the Sale of Assets by an Employer Who Contributes to a Multiemployer Plan; Washington Nationals Baseball Club, LLC, 17959-17961 [E7-6706]

Download as PDF Federal Register / Vol. 72, No. 68 / Tuesday, April 10, 2007 / Notices TXU Generation Company LP, Docket Nos. 50–445 and 50–446, Comanche Peak Steam Electric Station (CPSES), Unit Nos. 1 and 2, Somervell County, Texas Date of amendment request: February 21, 2006, as supplemented by letter dated March 19, 2007. Brief description of amendments: The amendments revise TS 5.6.5 entitled, ‘‘Core Operating Limits Report (COLR),’’ by adding two reports providing Lossof-Coolant Accident (LOCA) and nonLOCA analysis methodologies for CPSES Unit 1. Date of issuance: March 26, 2007. Effective date: As of the date of issuance and shall be implemented within 120 days from the date of issuance, but no later than the entry into Mode 5 in the restart of Unit 1 from its spring 2007 refueling outage. Amendment Nos.: 135/135. Facility Operating License Nos. NPF– 87 and NPF–89: The amendments revised the Facility Operating Licenses and Technical Specifications. Date of initial notice in Federal Register: June 6, 2006 (71 FR 32609). The supplemental letter dated March 19, 2007, provided additional information that clarified the application, did not expand the scope of the application as originally noticed, and did not change the staff’s original proposed no significant hazards consideration determination as published in the Federal Register. The Commission’s related evaluation of the amendments is contained in a Safety Evaluation dated March 26, 2007. No significant hazards consideration comments received: No. cprice-sewell on PROD1PC66 with NOTICES Union Electric Company, Docket No. 50–483, Callaway Plant, Unit 1, Callaway County, Missouri Date of application for amendment: May 25, 2006, as supplemented by letter dated March 12, 2007. Brief description of amendment: The amendment revised Technical Specifications 3.1.7, ‘‘Rod Position Indication,’’ 3.2.1, ‘‘Heat Flux Hot Channel Factor (FQ(Z)) (FQ Methodology),’’ 3.2.4, ‘‘Quadrant Power Tilt Ratio (QPTR),’’ and 3.3.1, ‘‘Reactor Trip System (RTS) Instrumentation,’’ to allow use of the Westinghouse proprietary computer code, the Best Estimate Analyzer for Core Operations— Nuclear (BEACON). Certain required actions, for when a limiting condition for operation is not met, and certain surveillance requirements are being changed to refer to power distribution measurements or measurement information of the core. VerDate Aug<31>2005 16:29 Apr 09, 2007 Jkt 211001 Date of issuance: March 21, 2007. Effective date: As of its date of issuance and shall be implemented before entry into Mode 2 in the plant restart from the refueling outage scheduled for the spring of 2007. This includes the incorporation of the identified changes to the Final Safety Analysis Report (FSAR) in Attachment 6 of the licensee’s application dated May 25, 2006, into the FSAR. Amendment No.: 182. Facility Operating License No. NPF– 30: The amendment revised the Operating License and Technical Specifications. Date of initial notice in Federal Register: July 18, 2006 (71 FR 40756) The supplemental letter dated March 12, 2007, provided additional information that clarified the application, did not expand the scope of the application as originally noticed, and did not change the NRC staff’s original proposed no significant hazards consideration determination published in the Federal Register on July 18, 2006. The Commission’s related evaluation of the amendment is contained in a Safety Evaluation dated March 21, 2007. No significant hazards consideration comments received: No. Dated at Rockville, Maryland, this 3rd day of April 2007. For the Nuclear Regulatory Commission. Catherine Haney, Director, Division of Operating Reactor Licensing, Office of Nuclear Reactor Regulation. [FR Doc. E7–6632 Filed 4–9–07; 8:45 am] BILLING CODE 7590–01–P OVERSEAS PRIVATE INVESTMENT CORPORATION Submission for OMB Review; Comment Request Overseas Private Investment Corporation (OPIC) ACTION: Request for comments. AGENCY: SUMMARY: Under the provision of the Paperwork Reduction Act (44 U.S.C. Chapter 35), agencies are required to publish a Notice in the Federal Register notifying the public that Agency is preparing an information collection request for OMB review and approval and to request public review and comment on the submission. Comments are being solicited on the need for the information, its practical utility, the accuracy of the Agency’s burden estimate, and on ways to minimize the reporting burden, including automated collection techniques and uses of other forms of PO 00000 Frm 00144 Fmt 4703 Sfmt 4703 17959 technology. The proposed form under review is summarized below. DATES: Comments must be received within 30 calendar days of this notice. ADDRESSES: Copies of the subject form and the request for review prepared for submission to OMB may be obtained from the Agency submitting officer. Comments on the form should be submitted to the Agency Submitting Officer. FOR FURTHER INFORMATION CONTACT: OPIC Agency Submitting Officer: Essie Bryant, Record Manager, Overseas Private Investment Corporation, 1100 New York Avenue, NW., Washington, DC 20527; 202–336–8563. Summary Form Under Review Type of Request: Revised form. Title: OPIC Self-Monitoring Questionnaire. Form Number: OPIC–162. Frequency of Use: Annually for duration of project. Type of Respondents: Business or other institution (except farms); individuals. Standard Industrial Classification Codes: All. Description of Affected Public: U.S. companies or citizens investing overseas. Reporting Hours: 6.5 hours per project. Number of Responses: 350 per year. Federal Cost: $35,000. Authority for Information Collection: Sections 231, 234(a), 239(d), and 240A of the Foreign Assistance Act of 1961, as amended. Abstract (Needs and Uses): The questionnaire is completed by OPICassisted investors annually. The questionnaire allows OPIC’s assessment of effects of OPIC-assisted projects on the U.S. economy and employment, as well as on the environment and economic development abroad. Dated: April 5, 2007. John P. Crowley, III, Senior Administrative Counsel, Department of Legal Affairs. [FR Doc. 07–1771 Filed 4–9–07; 8:45 am] BILLING CODE 3210–01–M PENSION BENEFIT GUARANTY CORPORATION Approval of Exemption From the Bond/ Escrow Requirement Relating to the Sale of Assets by an Employer Who Contributes to a Multiemployer Plan; Washington Nationals Baseball Club, LLC Pension Benefit Guaranty Corporation. AGENCY: E:\FR\FM\10APN1.SGM 10APN1 17960 ACTION: Federal Register / Vol. 72, No. 68 / Tuesday, April 10, 2007 / Notices Notice of approval. SUMMARY: The Pension Benefit Guaranty Corporation has granted a request from the Washington Nationals Baseball Club, LLC for an exemption from the bond/escrow requirement of section 4204(a)(1)(B) of the Employee Retirement Income Security Act of 1974, as amended, with respect to the Major League Baseball Players Benefit Plan. A notice of the request for exemption from the requirement was published on January 31, 2007 (72 FR 4538). The effect of this notice is to advise the public of the decision on the exemption request. ADDRESSES: The non-confidential portions of the request for an exemption and any PBGC response to the request may be obtained by writing PBGC’s Communications and Public Affairs Department (CPAD) at Suite 1200, 1200 K Street, NW., Washington, DC 20005– 4026, or by visiting or calling CPAD during normal business hours (202– 326–4040). FOR FURTHER INFORMATION CONTACT: Eric Field, Office of the Chief Counsel, Pension Benefit Guaranty Corporation, 1200 K Street, NW., Washington, DC 20005–4026; telephone 202–326–4020. (For TTY/TDD users, call the Federal Relay Service toll-free at 1–800–877– 8339 and ask to be connected to 202– 326–4020). SUPPLEMENTARY INFORMATION: cprice-sewell on PROD1PC66 with NOTICES Background Section 4204 of the Employee Retirement Income Security Act of 1974, as amended by the Multiemployer Pension Plan Amendments Act of 1980 (‘‘ERISA’’ or ‘‘the Act’’), provides that a bona fide arm’s-length sale of assets of a contributing employer to an unrelated party will not be considered a withdrawal if three conditions are met. These conditions, enumerated in section 4204(a)(1)(A)–(C), are that— (A) The purchaser has an obligation to contribute to the plan with respect to the operations for substantially the same number of contribution base units for which the seller was obligated to contribute; (B) The purchaser obtains a bond or places an amount in escrow, for a period of five plan years after the sale, in an amount equal to the greater of the seller’s average required annual contribution to the plan for the three plan years preceding the year in which the sale occurred or the seller’s required annual contribution for the plan year preceding the year in which the sale occurred (the amount of the bond or escrow is doubled if the plan is in VerDate Aug<31>2005 15:22 Apr 09, 2007 Jkt 211001 reorganization in the year in which the sale occurred); and (C) The contract of sale provides that if the purchaser withdraws from the plan within the first five plan years beginning after the sale and fails to pay any of its liability to the plan, the seller shall be secondarily liable for the liability it (the seller) would have had but for section 4204. The bond or escrow described above would be paid to the plan if the purchaser withdraws from the plan or fails to make any required contributions to the plan within the first five plan years beginning after the sale. Additionally, section 4204(b)(1) provides that if a sale of assets is covered by section 4204, the purchaser assumes by operation of law the contribution record of the seller for the plan year in which the sale occurred and the preceding four plan years. Section 4204(c) of ERISA authorizes the Pension Benefit Guaranty Corporation (‘‘PBGC’’) to grant individual or class variances or exemptions from the purchaser’s bond/ escrow requirement of section 4204(a)(1)(B) when warranted. The legislative history of section 4204 indicates a Congressional intent that the sales rules be administered in a manner that assures protection of the plan with the least practicable intrusion into normal business transactions. Senate Committee on Labor and Human Resources, 96th Cong., 2nd Sess., S. 1076, The Multiemployer Pension Plan Amendments Act of 1980: Summary and Analysis of Considerations 16 (Comm. Print, April 1980); 128 Cong. Rec. S10117 (July 29, 1980). The granting of an exemption or variance from the bond/escrow requirement does not constitute a finding by the PBGC that a particular transaction satisfies the other requirements of section 4204(a)(1). Under the PBGC’s regulation on variances for sales of assets (29 CFR Part 4204), a request for a variance or waiver of the bond/escrow requirement under any of the tests established in the regulation (sections 4204.12 & 4204.13) is to be made to the plan in question. The PBGC will consider waiver requests only when the request is not based on satisfaction of one of the three regulatory tests or when the parties assert that the financial information necessary to show satisfaction of one of the regulatory tests is privileged or confidential financial information within the meaning of 5 U.S.C. 552(b)(4) of the Freedom of Information Act. Under section 4204.22 of the regulation, the PBGC shall approve a request for a variance or exemption if it PO 00000 Frm 00145 Fmt 4703 Sfmt 4703 determines that approval of the request is warranted, in that it— (1) Would more effectively or equitably carry out the purposes of Title IV of the Act; and (2) Would not significantly increase the risk of financial loss to the plan. Section 4204(c) of ERISA and section 4204.22(b) of the regulation require the PBGC to publish a notice of the pendency of a request for a variance or exemption in the Federal Register, and to provide interested parties with an opportunity to comment on the proposed variance or exemption. The PBGC received no comments on the request for exemption. Decision On January 31, 2007, the PBGC published a notice of the pendency of a request by the Washington Nationals Baseball Club, LLC (the ‘‘Buyer’’) for an exemption from the bond/escrow requirement of section 4204(a)(1)(B) with respect to its purchase of the Washington Nationals Baseball Team from Baseball Expos, L.P. (the ‘‘Seller’’) (72 FR 4538). According to the request, the Major League Baseball Players Benefit Plan (the ‘‘Plan’’) was established and is maintained pursuant to a collective bargaining agreement between the professional major league baseball teams (the ‘‘Clubs’’) and the Major League Baseball Players Association (the ‘‘Players Association’’). According to the Buyer’s representations, the Seller was obligated to contribute to the Plan for certain employees of the sold operations. Pursuant to an agreement dated April 24, 2006, the Buyer and Seller entered into an agreement under which the Buyer agreed to purchase substantially all of the assets and assume substantially all of the liabilities of the Seller relating to the business of employing employees under the Plan. The Buyer agreed to contribute to the Plan for substantially the same number of contribution base units as the Seller. The Seller agreed to be secondarily liable for any withdrawal liability it would have had with respect to the sold operations (if not for section 4204) should the Buyer withdraw from the Plan within the five plan years following the sale and fail to pay its withdrawal liability. The amount of the bond/escrow required under section 4204(a)(1)(B) of ERISA is $2,803,040. The estimated amount of the unfunded vested benefits allocable to the Seller with respect to the operations subject to the sale is $14,454,124. While the separate major league clubs are the nominal contributing employers to the Plan, the Major League Central Fund E:\FR\FM\10APN1.SGM 10APN1 Federal Register / Vol. 72, No. 68 / Tuesday, April 10, 2007 / Notices under the Office of the Commissioner receives the revenues and makes the payments for certain common expenses, including each club’s contribution to the Plan. In support of the waiver request, the requester asserts that: ‘‘The Plan is funded directly from Revenues which are paid from the Central Fund directly to the Plan without passing through the hands of any of the clubs. Therefore, the Plan enjoys a substantial degree of security with respect to contributions on behalf of the clubs. A change in ownership of a club does not affect the obligation of the Central Fund to fund the Plan out of the Revenue. As such, approval of this exemption request would not significantly increase the risk of financial loss to the Plan.’’ Based on the facts of this case and the representations and statements made in connection with the request for an exemption, the PBGC has determined that an exemption from the bond/ escrow requirement is warranted, in that it would more effectively carry out the purposes of Title IV of ERISA and would not significantly increase the risk of financial loss to the Plan. Therefore, the PBGC hereby grants the request for an exemption for the bond/escrow requirement. The granting of an exemption or variance from the bond/ escrow requirement of section 4204(a)(1)(B) does not constitute a finding by the PBGC that the transaction satisfies the other requirements of section 4204(a)(1). The determination of whether the transaction satisfies such other requirements is a determination to be made by the Plan sponsor. Issued at Washington, DC, on this 30th day of March, 2007. Vincent K. Snowbarger, Interim Director, Pension Benefit Guaranty Corporation. [FR Doc. E7–6706 Filed 4–9–07; 8:45 am] BILLING CODE 7708–01–P SECURITIES AND EXCHANGE COMMISSION cprice-sewell on PROD1PC66 with NOTICES [Release No. 34–55570; File No. SR–CBOE– 2007–15] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of Proposed Rule Change To Amend CBOE’s Membership Application Procedures To Incorporate Individuals Who Are Acting in an Exchange Trading Floor Capacity April 2, 2007. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 VerDate Aug<31>2005 15:22 Apr 09, 2007 Jkt 211001 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on February 14, 2007, The Chicago Board Options Exchange, Incorporated (‘‘CBOE’’ or ‘‘Exchange’’), filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been substantially prepared by CBOE. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of the Substance of the Proposed Rule Change The Exchange proposes to amend its membership application procedures to incorporate those individuals who are acting in an Exchange trading floor capacity. Set forth below are the proposed changes to the rule text with additions in italic. Chicago Board Options Exchange, Incorporated Rules * * * * * Rule 3.9. Application Procedures and Approval or Disapproval (a)–(f) No Change. (g) Any person applying pursuant to paragraph (a) of this Rule to have an authorized trading function is required to have completed the Exchange’s Member Orientation Program and to have passed an Exchange Trading Member Qualification Exam. Additionally, any person who has completed the Member Orientation Program and taken and passed the applicable Trading Member Qualification Exam and who then does not possess an authorized trading function or Exchange trading floor capacity for more than 1 year is required to complete the Member Orientation Program and to re-pass the applicable Trading Member Qualification Exam in order to once again become eligible to have an authorized trading function. A person must score 75% or better on the applicable Trading Member Qualification Exam in order to pass the Exam. Any person who fails the applicable Trading Member Qualification Exam must wait 30 days to re-take the Exam after failing the Exam for the first time, must wait 60 days to re-take the Exam after failing the Exam for the second time, and must wait 120 days to re-take the Exam after failing the Exam for a third or subsequent time. The Exchange may not waive any of the 1 15 2 17 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00146 Fmt 4703 Sfmt 4703 17961 requirements set forth in this paragraph (g). (h)–(l) No Change. * * * Interpretations and Policies: .01 No Change. .02 No Change. .03 For purposes of this rule, ‘‘Exchange trading floor capacity’’ means any person who is acting on behalf of the Exchange in an Exchange trading floor capacity, such as a PAR Official, Order Book Official, or other similar function. * * * * * II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, CBOE included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. CBOE has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose Exchange Rule 3.9, entitled ‘‘Application Procedures and Approval or Disapproval,’’ outlines, among other things, the application procedures for an individual who desires to become a member of the Exchange. Paragraph (g) of Exchange Rule 3.9 currently requires any person applying to the Exchange to (i) have completed the Exchange’s Member Orientation Program (‘‘Orientation Program’’) and (ii) passed an Exchange Trading Member Qualification Exam (‘‘Qualification Exam’’). However, a person who has completed the Orientation Program and taken and passed the Qualification Exam but does not possess an authorized trading function for more than one year must again complete the Orientation Program and re-pass the Qualification Exam. This filing proposes to amend CBOE’s rules to provide that PAR Officials and Order Book Officials, as described in CBOE’s rules and discussed below, as well as others acting in a similar capacity (i.e., an Exchange trading floor capacity), shall be included in the rule, in addition to those who possess an authorized trading function, since both functions are similar. On November 18, 2005, the Commission approved a filing which E:\FR\FM\10APN1.SGM 10APN1

Agencies

Pension Benefit Guaranty Corporation

[Federal Register Volume 72, Number 68 (Tuesday, April 10, 2007)]
[Notices]
[Pages 17959-17961]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-6706]


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PENSION BENEFIT GUARANTY CORPORATION


Approval of Exemption From the Bond/Escrow Requirement Relating 
to the Sale of Assets by an Employer Who Contributes to a Multiemployer 
Plan; Washington Nationals Baseball Club, LLC

AGENCY: Pension Benefit Guaranty Corporation.

[[Page 17960]]


ACTION: Notice of approval.

-----------------------------------------------------------------------

SUMMARY: The Pension Benefit Guaranty Corporation has granted a request 
from the Washington Nationals Baseball Club, LLC for an exemption from 
the bond/escrow requirement of section 4204(a)(1)(B) of the Employee 
Retirement Income Security Act of 1974, as amended, with respect to the 
Major League Baseball Players Benefit Plan. A notice of the request for 
exemption from the requirement was published on January 31, 2007 (72 FR 
4538). The effect of this notice is to advise the public of the 
decision on the exemption request.

ADDRESSES: The non-confidential portions of the request for an 
exemption and any PBGC response to the request may be obtained by 
writing PBGC's Communications and Public Affairs Department (CPAD) at 
Suite 1200, 1200 K Street, NW., Washington, DC 20005-4026, or by 
visiting or calling CPAD during normal business hours (202-326-4040).

FOR FURTHER INFORMATION CONTACT: Eric Field, Office of the Chief 
Counsel, Pension Benefit Guaranty Corporation, 1200 K Street, NW., 
Washington, DC 20005-4026; telephone 202-326-4020. (For TTY/TDD users, 
call the Federal Relay Service toll-free at 1-800-877-8339 and ask to 
be connected to 202-326-4020).

SUPPLEMENTARY INFORMATION:

Background

    Section 4204 of the Employee Retirement Income Security Act of 
1974, as amended by the Multiemployer Pension Plan Amendments Act of 
1980 (``ERISA'' or ``the Act''), provides that a bona fide arm's-length 
sale of assets of a contributing employer to an unrelated party will 
not be considered a withdrawal if three conditions are met. These 
conditions, enumerated in section 4204(a)(1)(A)-(C), are that--
    (A) The purchaser has an obligation to contribute to the plan with 
respect to the operations for substantially the same number of 
contribution base units for which the seller was obligated to 
contribute;
    (B) The purchaser obtains a bond or places an amount in escrow, for 
a period of five plan years after the sale, in an amount equal to the 
greater of the seller's average required annual contribution to the 
plan for the three plan years preceding the year in which the sale 
occurred or the seller's required annual contribution for the plan year 
preceding the year in which the sale occurred (the amount of the bond 
or escrow is doubled if the plan is in reorganization in the year in 
which the sale occurred); and
    (C) The contract of sale provides that if the purchaser withdraws 
from the plan within the first five plan years beginning after the sale 
and fails to pay any of its liability to the plan, the seller shall be 
secondarily liable for the liability it (the seller) would have had but 
for section 4204.
    The bond or escrow described above would be paid to the plan if the 
purchaser withdraws from the plan or fails to make any required 
contributions to the plan within the first five plan years beginning 
after the sale. Additionally, section 4204(b)(1) provides that if a 
sale of assets is covered by section 4204, the purchaser assumes by 
operation of law the contribution record of the seller for the plan 
year in which the sale occurred and the preceding four plan years.
    Section 4204(c) of ERISA authorizes the Pension Benefit Guaranty 
Corporation (``PBGC'') to grant individual or class variances or 
exemptions from the purchaser's bond/escrow requirement of section 
4204(a)(1)(B) when warranted. The legislative history of section 4204 
indicates a Congressional intent that the sales rules be administered 
in a manner that assures protection of the plan with the least 
practicable intrusion into normal business transactions. Senate 
Committee on Labor and Human Resources, 96th Cong., 2nd Sess., S. 1076, 
The Multiemployer Pension Plan Amendments Act of 1980: Summary and 
Analysis of Considerations 16 (Comm. Print, April 1980); 128 Cong. Rec. 
S10117 (July 29, 1980). The granting of an exemption or variance from 
the bond/escrow requirement does not constitute a finding by the PBGC 
that a particular transaction satisfies the other requirements of 
section 4204(a)(1).
    Under the PBGC's regulation on variances for sales of assets (29 
CFR Part 4204), a request for a variance or waiver of the bond/escrow 
requirement under any of the tests established in the regulation 
(sections 4204.12 & 4204.13) is to be made to the plan in question. The 
PBGC will consider waiver requests only when the request is not based 
on satisfaction of one of the three regulatory tests or when the 
parties assert that the financial information necessary to show 
satisfaction of one of the regulatory tests is privileged or 
confidential financial information within the meaning of 5 U.S.C. 
552(b)(4) of the Freedom of Information Act.
    Under section 4204.22 of the regulation, the PBGC shall approve a 
request for a variance or exemption if it determines that approval of 
the request is warranted, in that it--
    (1) Would more effectively or equitably carry out the purposes of 
Title IV of the Act; and
    (2) Would not significantly increase the risk of financial loss to 
the plan.
    Section 4204(c) of ERISA and section 4204.22(b) of the regulation 
require the PBGC to publish a notice of the pendency of a request for a 
variance or exemption in the Federal Register, and to provide 
interested parties with an opportunity to comment on the proposed 
variance or exemption. The PBGC received no comments on the request for 
exemption.

Decision

    On January 31, 2007, the PBGC published a notice of the pendency of 
a request by the Washington Nationals Baseball Club, LLC (the 
``Buyer'') for an exemption from the bond/escrow requirement of section 
4204(a)(1)(B) with respect to its purchase of the Washington Nationals 
Baseball Team from Baseball Expos, L.P. (the ``Seller'') (72 FR 4538). 
According to the request, the Major League Baseball Players Benefit 
Plan (the ``Plan'') was established and is maintained pursuant to a 
collective bargaining agreement between the professional major league 
baseball teams (the ``Clubs'') and the Major League Baseball Players 
Association (the ``Players Association'').
    According to the Buyer's representations, the Seller was obligated 
to contribute to the Plan for certain employees of the sold operations. 
Pursuant to an agreement dated April 24, 2006, the Buyer and Seller 
entered into an agreement under which the Buyer agreed to purchase 
substantially all of the assets and assume substantially all of the 
liabilities of the Seller relating to the business of employing 
employees under the Plan. The Buyer agreed to contribute to the Plan 
for substantially the same number of contribution base units as the 
Seller. The Seller agreed to be secondarily liable for any withdrawal 
liability it would have had with respect to the sold operations (if not 
for section 4204) should the Buyer withdraw from the Plan within the 
five plan years following the sale and fail to pay its withdrawal 
liability. The amount of the bond/escrow required under section 
4204(a)(1)(B) of ERISA is $2,803,040. The estimated amount of the 
unfunded vested benefits allocable to the Seller with respect to the 
operations subject to the sale is $14,454,124. While the separate major 
league clubs are the nominal contributing employers to the Plan, the 
Major League Central Fund

[[Page 17961]]

under the Office of the Commissioner receives the revenues and makes 
the payments for certain common expenses, including each club's 
contribution to the Plan. In support of the waiver request, the 
requester asserts that: ``The Plan is funded directly from Revenues 
which are paid from the Central Fund directly to the Plan without 
passing through the hands of any of the clubs. Therefore, the Plan 
enjoys a substantial degree of security with respect to contributions 
on behalf of the clubs. A change in ownership of a club does not affect 
the obligation of the Central Fund to fund the Plan out of the Revenue. 
As such, approval of this exemption request would not significantly 
increase the risk of financial loss to the Plan.''
    Based on the facts of this case and the representations and 
statements made in connection with the request for an exemption, the 
PBGC has determined that an exemption from the bond/escrow requirement 
is warranted, in that it would more effectively carry out the purposes 
of Title IV of ERISA and would not significantly increase the risk of 
financial loss to the Plan. Therefore, the PBGC hereby grants the 
request for an exemption for the bond/escrow requirement. The granting 
of an exemption or variance from the bond/escrow requirement of section 
4204(a)(1)(B) does not constitute a finding by the PBGC that the 
transaction satisfies the other requirements of section 4204(a)(1).
    The determination of whether the transaction satisfies such other 
requirements is a determination to be made by the Plan sponsor.

    Issued at Washington, DC, on this 30th day of March, 2007.
Vincent K. Snowbarger,
Interim Director, Pension Benefit Guaranty Corporation.
 [FR Doc. E7-6706 Filed 4-9-07; 8:45 am]
BILLING CODE 7708-01-P

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