Prohibited Transaction Exemptions
The United States Department of Labor (DOL) has the authority to grant administrative exemptions from all or part of the prohibited transaction provisions of ERISA on an individual or class basis. These exemptions allow specified transactions to occur without liability under ERISA or the imposition of excise tax under the Internal Revenue Code. In order to safeguard the interests of the plan, these exemptions often require the retention of a qualified independent fiduciary. The independent fiduciary is generally responsible for determining whether the proposed transaction is in the interest of the plan and its participants and beneficiaries and for monitoring compliance with specified conditions of the exemption.
Over the last 15 years, Evercore Trust, formerly the SFS team, has served as an independent fiduciary on behalf of employee benefit plans on more exemptions than the next two competing firms combined, including many of the most complex exemptions granted by the DOL to large financial institutions and Fortune 500 corporations. These prohibited transaction exemptions have permitted transactions including, in-kind contributions, in-kind redemptions, captive reinsurance arrangements, sale of assets to plans, rights offerings, demutualizations, sale/leasebacks of real estate, provision of services to plans, and issues arising out of the consolidation of financial institutions.
The table below highlights the individual and EXPRO prohibited transaction exemptions granted or proposed by the DOL in which Evercore Trust and the SFS team have served as an independent fiduciary.*
| PTE ID | Applicant | Subject Matter | Date Published |
|---|---|---|---|
| D-11677 | Weyerhaeuser Company and Federalway Asset Management LP | In Kind Contribution (Intangible Assets) | 1/20/2012 |
| D-11687 | BlackRock, Inc. | Financial Consolidation (25 Covered Transactions) | 1/19/2012 |
| D-11662 | EnPro Industries, Inc. | In Kind Contribution (Annuity) | 12/13/2011 |
| D-11637 | HSBC North America | Rights Offering | 11/14/2011 |
| 2011-17 | BlackRock, Inc. | Financial Consolidation (25 Covered Transactions) | 8/15/11 |
| 2010-22 | CUNA Mutual Pension Plan for Represented Employees et al | In Kind Contribution (Private Equity) | 7/2/10 |
| 2010-11 | The Coca Cola Co. | Captive Reinsurance | 4/2/10 |
| 09-05E | The Bank of New York Mellon Corporation | In Kind Redemption | 3/25/09 |
| 2009-26 | M&T Bank Corp. Pension Pla | In Kind Redemption | 9/25/09 |
| 2009-25 | Barclays Global Investors NA et al | Financial Consolidation (Principal Trading, Indices) | 9/1/09 |
| 2009-14 | UBS AG and its affiliates et al (entitlements and subscription rights) | Rights Offering | 5/6/09 |
| 2009-11 | Amendment to PTE 1999-34 involving the Chase Manhattan Bank/JPMorgan Chase Bank National Association | Financial Consolidation (Securities Lending) | 3/26/09 |
| 2009-01 | Calpine Corp. | Rights Offering | 1/29/09 |
| 08-17E | DPWN Holdings (USA) Inc | Captive Reinsurance | 12/22/08 |
| 08-16E | AstraZeneca Pharmaceuticals LP and AstraZeneca LP | Captive Reinsurance | 12/20/08 |
| 08-02E | Wachovia Corporation Pension Plan | In Kind Redemption | 3/3/08 |
| 2008-04 | GE Asset Management Inc. | In Kind Redemption | 3/13/08 |
| 2007-04 | Mellon Financial Corp. et al | In Kind Redemption | 3/20/07 |
| 06-08E | Mercer Trust Company et al | In Kind Redemption | 3/15/06 |
| 06-06E | Raytheon Savings & Investment Plan | Rights Offering | 2/12/06 |
| 06-02E | Astra Zeneca Pharmaceuticals and AZ-Mont Insurance Co. Life Insurance & AD&D Plan | Captive Reinsurance | 1/5/06 |
| 06-01E | Astra Zeneca Pharmaceuticals and AZ-Mont Insurance Co. Long term Disability Plan | Captive Reinsurance | 1/5/06 |
| 05-12E | Raytheon Savings and Investment Plan | In Kind Contribution (Warrants) | 7/13/05 |
| 05-08E | Federal-Mogul Corp. Salaried Employee's Investment Program | In Kind Contribution (Warrants) | 4/8/05 |
| 05-07E | Federal-Mogul Corp. Employee Investment Program | In Kind Contribution (Warrants) | 4/8/05 |
| 05-06E | Federal-Mogul Corp. 401(k) Investment Program | In Kind Contribution (Warrants) | 4/8/05 |
| 2005-16 | Wachovia Corp. | In Kind Redemption | 12/28/05 |
| 2005-04 | Wheeling Pittsburgh Corp. and the Wheeling Pittsburgh Steel Corp. | In Kind Contribution (Employer Stock) | 2/3/05 |
| 04-17E | ALCON Laboratories Inc. | Captive Reinsurance | 8/19/04 |
| 2004-12 | Svenska Cellulosa Aktiebolaget | Captive Reinsurance | 7/7/04 |
| 2004-11 | Pan American Life Insurance Corp. | In Kind Redemption | 7/7/04 |
| 2004-10 | DuPont Capital Management Corp. | In Kind Redemption | 7/7/04 |
| 03-32E | International Paper Company | Captive Reinsurance | 11/7/03 |
| 2002-20 | Union Bank of California | In Kind Redemption | 3/28/02 |
| 2002-09 | Prudential Insurance Co. of America | Demutualization | 2/5/02 |
| 2001-42 | Columbia Savings Plans | Rights Offering | 10/22/01 |
| 2001-38 | The Savings Plan for Employees of Florida Progress Corp. (contingent value obligations) | In Kind Contribution (CVOs) | 10/22/01 |
| 2001-36 | Principal Mutual Holding Co. | Demutualization | 9/27/01 |
| 2001-22 | Phoenix Home Life Mutual Insurance Co. | Demutualization | 6/28/01 |
| 2001-17 | Indianapolis Life Insurance Co. et al | Demutualization | 5/4/01 |
| 2000-57 | Sun Life Insurance Co. | Demutualization | 11/13/00 |
| 2000-09 | The FINA Inc. Capital Accumulation Plan(warrants) | In Kind Contribution (Warrants) | 2/29/00 |
| 2000-06 | John Hancock Mutual Life Insurance Co. | Demutualization | 2/8/00 |
| 1998-51 | US West Inc. et al | In Kind Contribution (Employer Stock) | 11/9/98 |
| 1998-35 | Amalgamated Bank of New York | Provision of Services to Plans | 7/8/98 |
| 1997-35 | ILGWU National Retirement Fund et al | Provision of Services to Plans | 7/31/97 |
| 1995-85 | Retirement Plan for Employees of Automobile Club of New York, Inc. | Purchase by Plan of Real Property with Leaseback | 9/21/95 |
| 1995-25 | General Motors Hourly Rate Employee Pension Plan | In Kind Contribution (Employer Stock) | 3/15/95 |
| 1993-70 | The Amalgamated Insurance Fund--Insurance Fund; The Amalgamated Cotton Garment and Allied Industries Fund--Insurance Fund; The Amalgamated Neckwear Workers Insurance Fund--Social Insurance Fund; The Amalgamated Retail Insurance Fund, et al. | Provision of Services to Plans | 9/30/93 |
| 1993-50 | Memorex Telex Employees' Pension Plan | Purchase by Plan of Employer Stock | 8/4/93 |
| 1993-38 | Citizens First National Bank of New Jersey, Employee Stock Ownership Plan | Rights Offering | 6/29/93 |
* Table updated as of January 20, 2012