Approval of Exemption From the Bond/Escrow Requirement Relating to the Sale of Assets by an Employer Who Contributes to a Multiemployer Plan: Ricketts Acquisition LLC and the Chicago National League Ball Club, LLC, 81675-81677 [2010-32528]
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Federal Register / Vol. 75, No. 248 / Tuesday, December 28, 2010 / Notices
within 120 days from the date of
issuance.
Amendment Nos.: 313 (for Unit 1) and
296 (for Unit 2).
Facility Operating License Nos. DPR–
58 and DPR–74: Amendment revised the
Renewed Operating License and
Technical Specifications.
Date of initial notice in Federal
Register: October 14, 2010 (75 FR
63209).
The Commission’s related evaluation
of the amendment is contained in a
Safety Evaluation dated December 14,
2010.
No significant hazards consideration
comments received: No.
Northern States Power Company—
Minnesota, Docket Nos. 50–282 and 50–
306, Prairie Island Nuclear Generating
Plant, Units 1 and 2, Goodhue County,
Minnesota
emcdonald on DSK2BSOYB1PROD with NOTICES
Date of application for amendments:
November 24, 2009, as supplemented by
letter dated May 26, 2010.
Brief description of amendments:
These amendments revise Technical
Specification (TS) 4.2.1, ‘‘Fuel
Assemblies,’’ to add Optimized
ZIRLOTM as an acceptable fuel rod
cladding material and add two
Westinghouse topical reports to the
analytical methods identified in TS
5.6.5.b.
Date of issuance: November 29, 2010.
Effective date: As of the date of
issuance and shall be implemented
within 60 days.
Amendment Nos.: 199, 187.
Facility Operating License Nos. DPR–
42 and DPR–60: Amendments revised
the Technical Specifications.
Date of initial notice in Federal
Register: May 4, 2010 (75 FR 23816).
The supplemental letter contained
clarifying information and did not
change the initial no significant hazards
consideration determination, and did
not expand the scope of the original
Federal Register notice.
The Commission’s related evaluation
of the amendments is contained in a
Safety Evaluation dated November 29,
2010.
No significant hazards consideration
comments received: No.
Dated at Rockville, Maryland this 16th day
of December, 2010.
For the Nuclear Regulatory Commission.
Joseph G. Giitter,
Director, Division of Operating Reactor
Licensing, Office of Nuclear Reactor
Regulation.
[FR Doc. 2010–32668 Filed 12–27–10; 8:45 am]
BILLING CODE 7590–01–P
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22:37 Dec 27, 2010
Jkt 223001
II. Further Information
NUCLEAR REGULATORY
COMMISSION
[NRC–2010–0031]
Notice of Issuance of Regulatory Guide
Nuclear Regulatory
Commission.
ACTION: Notice of Issuance and
Availability of Regulatory Guide 4.16,
Revision 2, ‘‘Monitoring and Reporting
Radioactive Materials in Liquid and
Gaseous Effluents from Nuclear Fuel
Cycle Facilities.’’
AGENCY:
FOR FURTHER INFORMATION CONTACT:
Mekonen M. Bayssie, Regulatory Guide
Development Branch, Division of
Engineering, Office of Nuclear
Regulatory Research, U.S. Nuclear
Regulatory Commission, Washington,
DC 20555–0001, telephone (301) 251–
7489 or e-mail
Mekonen.Bayssie@nrc.gov.
SUPPLEMENTARY INFORMATION:
I. Introduction
The U.S. Nuclear Regulatory
Commission (NRC) is issuing a revision
to an existing guide in the agency’s
‘‘Regulatory Guide’’ series. This series
was developed to describe and make
available to the public information such
as methods that are acceptable to the
NRC staff for implementing specific
parts of the agency’s regulations,
techniques that the staff uses in
evaluating specific problems or
postulated accidents, and data that the
staff needs in its review of requests for
licensing actions. In March 2010,
Revision 2 of Regulatory Guide 4.16,
‘‘Monitoring and Reporting Radioactive
Materials in Liquid and Gaseous
Effluents from Nuclear Fuel Cycle
Facilities,’’ was published as Draft
Regulatory Guide, DG–4017, with a
public comment period of 60 days. This
guide describes a method that the staff
of the NRC considers acceptable for the
development and implementation of
effluent monitoring programs described
in license applications and for
monitoring and reporting effluent data
by licensees. The guidance is applicable
to nuclear fuel cycle facilities, with the
exception of uranium milling facilities
and nuclear power reactors. The NRC
has developed other regulatory guides
applicable to those facilities.
Revision of this regulatory guide is
necessary to update references and
practices and to communicate its
applicability to the enrichment plants
which have come under the regulatory
authority of the NRC since the issuance
of Revision 1 of the guide.
PO 00000
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81675
The staff’s responses to the public
comments received on DG–4017 are
located in the NRC’s Agencywide
Documents Access and Management
System (ADAMS) under Accession
Number ML101720322. The regulatory
analysis may be found in ADAMS under
Accession No. ML101720311. Electronic
copies of Regulatory Guide 4.16,
Revision 2 are available through the
NRC’s public Web site under
‘‘Regulatory Guides’’ at https://
www.nrc.gov/reading-rm/doccollections/.
In addition, regulatory guides are
available for inspection at the NRC’s
Public Document Room (PDR) located at
Room O–1F21, One White Flint North,
11555 Rockville Pike, Rockville,
Maryland 20852–2738. The PDR’s
mailing address is USNRC PDR,
Washington, DC 20555–0001. The PDR
can also be reached by telephone at
(301) 415–4737 or (800) 397–4209, by
fax at (301) 415–3548, and by e-mail to
pdr.resource@nrc.gov.
Regulatory guides are not
copyrighted, and NRC approval is not
required to reproduce them.
Dated at Rockville, Maryland this 15th day
of December, 2010.
For the Nuclear Regulatory Commission.
John N. Ridgely,
Acting Chief, Regulatory Guide Development
Branch, Division of Engineering, Office of
Nuclear Regulatory Research.
[FR Doc. 2010–32448 Filed 12–27–10; 8:45 am]
BILLING CODE 7590–01–P
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:
Ricketts Acquisition LLC and the
Chicago National League Ball Club,
LLC
Pension Benefit Guaranty
Corporation.
ACTION: Notice of approval.
AGENCY:
The Pension Benefit Guaranty
Corporation has granted a request from
Ricketts Acquisition 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 Pension Plan. A notice of the
request for exemption from the
requirement was published on
September 3, 2010. The effect of this
SUMMARY:
E:\FR\FM\28DEN1.SGM
28DEN1
81676
Federal Register / Vol. 75, No. 248 / Tuesday, December 28, 2010 / Notices
notice is to advise the public of the
decision on the exemption request.
ADDRESSES: Copies of public comments
are available on PBGC’s Web site, https://
www.pbgc.gov. Copies of the comments
may be obtained by writing PBGC’s
Communications and Public Affairs
Department (CPAD) at Suite 240, 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:
Theresa Anderson, 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:
emcdonald on DSK2BSOYB1PROD 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
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
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22:37 Dec 27, 2010
Jkt 223001
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 (§§ 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
PO 00000
Frm 00117
Fmt 4703
Sfmt 4703
PBGC received no comments on the
request for exemption.
The Decision
On September 3, 2010, the PBGC
published a notice of the pendency of a
request by Ricketts Acquisition LLC (the
‘‘Buyer’’) for an exemption from the
bond/escrow requirement of section
4204(a)(1)(B) with respect to its
purchase of the Chicago Cubs from the
Chicago National League Ball Club, LLC
(the ‘‘Seller’’). According to the request,
the Major League Baseball Players
Pension 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.
Effective October 13, 2009, 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 $4,068,868.
The estimated amount of the unfunded
vested benefits allocable to the Seller
with respect to the operations subject to
the sale is $34,030,359. While the
separate major league clubs are the
nominal contributing employers to the
Plan, the Major League Central Fund
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 from the 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 particular Club does not
affect the obligation of the Central Fund
to fund the Plan out of the Revenues. As
such, approval of this exemption
E:\FR\FM\28DEN1.SGM
28DEN1
Federal Register / Vol. 75, No. 248 / Tuesday, December 28, 2010 / Notices
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, December 12,
2010.
Joshua Gotbaum,
Director.
[FR Doc. 2010–32528 Filed 12–27–10; 8:45 am]
BILLING CODE 7708–01–P
PENSION BENEFIT GUARANTY
CORPORATION
Pendency of Request for Exemption
From the Bond/Escrow Requirement
Relating to the Sale of Assets by an
Employer Who Contributes to a
Multiemployer Plan: Rangers Baseball
Express, LLC, and Texas Rangers
Baseball Partners
Pension Benefit Guaranty
Corporation.
ACTION: Notice of pendency of request.
AGENCY:
This notice advises interested
persons that the Pension Benefit
Guaranty Corporation (‘‘PBGC’’) has
received a request from Rangers
Baseball Express, 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 Pension Plan.
Section 4204(a)(1) provides that the sale
of assets by an employer that
contributes to a multiemployer pension
plan will not constitute a complete or
partial withdrawal from the plan if the
transaction meets certain conditions.
One of these conditions is that the
purchaser post a bond or deposit money
in escrow for the five-plan-year period
beginning after the sale. PBGC is
authorized to grant individual and class
exemptions from this requirement.
emcdonald on DSK2BSOYB1PROD with NOTICES
SUMMARY:
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22:37 Dec 27, 2010
Jkt 223001
Before granting an exemption, the
statute and PBGC regulations require
PBGC to give interested persons an
opportunity to comment on the
exemption request. The purpose of this
notice is to advise interested persons of
the exemption request and solicit their
views on it.
DATES: Comments must be submitted on
or before February 11, 2011.
ADDRESSES: Comments may be
submitted by any off the following
methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the Web
site instructions for submitting
comments.
• E-mail: reg.comments@pbgc.gov.
• Fax: 202–326–4224.
• Mail or Hand Delivery: Legislative
and Regulatory Department, Pension
Benefit Guaranty Corporation, 1200 K
Street, NW., Washington, DC 20005–
4026. Comments received, including
personal information provided, will be
posted to https://www.pbgc.gov. Copies
of comments may also be obtained by
writing to Disclosure Division, Office of
General Counsel, Pension Benefit
Guaranty Corporation, 1200 K Street,
NW., Washington, DC 20005–4026, or
calling 202–326–4040 during normal
business hours. (TTY and TDD users
may call the Federal relay service tollfree at 1–800–877–8339 and ask to be
connected to 202–326–4040.)
FOR FURTHER INFORMATION CONTACT:
Theresa Anderson, Attorney, Office of
the Chief Counsel, Suite 340, 1200 K
Street, NW., Washington, DC 20005–
4026, 202–326–4020. (For TTY/TTD
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
covered 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, equal to
the greater of the seller’s average
PO 00000
Frm 00118
Fmt 4703
Sfmt 4703
81677
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 the relief afforded under 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 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
statute be administered in a manner that
assures protection of the plan with the
least intrusion into normal business
transactions practicable. 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 a variance or exemption
from the bond/escrow requirement does
not constitute a finding by PBGC that a
particular transaction satisfies the other
requirements of section 4204(a)(1).
Under PBGC’s regulation on variances
for sales of assets (29 CFR part 4204), a
request for a variance or exemption from
the bond/escrow requirement under any
of the tests established in the regulation
(§§ 4204.12 and 4204.13) is to be made
to the plan in question. PBGC will
consider variance or exemption requests
only when the request is not based on
satisfaction of one of the four regulatory
tests under regulation §§ 4204.12 and
4204.13, or when the parties assert that
the financial information necessary to
show satisfaction of one of the
regulatory tests is privileged or
E:\FR\FM\28DEN1.SGM
28DEN1
]]>Agencies
[Federal Register Volume 75, Number 248 (Tuesday, December 28, 2010)]
[Notices]
[Pages 81675-81677]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-32528]
=======================================================================
-----------------------------------------------------------------------
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: Ricketts Acquisition LLC and the Chicago National League Ball
Club, LLC
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Notice of approval.
-----------------------------------------------------------------------
SUMMARY: The Pension Benefit Guaranty Corporation has granted a request
from Ricketts Acquisition 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 Pension Plan. A notice of the request for exemption
from the requirement was published on September 3, 2010. The effect of
this
[[Page 81676]]
notice is to advise the public of the decision on the exemption
request.
ADDRESSES: Copies of public comments are available on PBGC's Web site,
https://www.pbgc.gov. Copies of the comments may be obtained by writing
PBGC's Communications and Public Affairs Department (CPAD) at Suite
240, 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: Theresa Anderson, 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
(Sec. Sec. 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.
The Decision
On September 3, 2010, the PBGC published a notice of the pendency
of a request by Ricketts Acquisition LLC (the ``Buyer'') for an
exemption from the bond/escrow requirement of section 4204(a)(1)(B)
with respect to its purchase of the Chicago Cubs from the Chicago
National League Ball Club, LLC (the ``Seller''). According to the
request, the Major League Baseball Players Pension 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.
Effective October 13, 2009, 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
$4,068,868. The estimated amount of the unfunded vested benefits
allocable to the Seller with respect to the operations subject to the
sale is $34,030,359. While the separate major league clubs are the
nominal contributing employers to the Plan, the Major League Central
Fund 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 from the 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 particular Club does not
affect the obligation of the Central Fund to fund the Plan out of the
Revenues. As such, approval of this exemption
[[Page 81677]]
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, December 12, 2010.
Joshua Gotbaum,
Director.
[FR Doc. 2010-32528 Filed 12-27-10; 8:45 am]
BILLING CODE 7708-01-P
