Exemptions From Certain Prohibited Transaction Restrictions, 19687-19691 [2015-08301]

Agencies

• Employee Benefits Security Administration
• DEPARTMENT OF LABOR

[Federal Register Volume 80, Number 70 (Monday, April 13, 2015)]
[Notices]
[Pages 19687-19691]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-08301]


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DEPARTMENT OF LABOR

Employee Benefits Security Administration


Exemptions From Certain Prohibited Transaction Restrictions

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). 
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:
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    \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).
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    (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.
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    \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.
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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.
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    \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.
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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