Notice of Proposed Exemption Involving Family Dynamics, Inc., Pension Plan (the Plan), Located in Leesburg, Florida
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SUMMARY: This document contains a notice of pendency (the Notice) before the
DATES: Effective Date: This proposed exemption, if granted, shall be effective with regard to the transactions described in Section I below for the period beginning on
DATES: Written comments and requests for a public hearing on the proposed exemption should be submitted
ADDRESSES: All written comments and/or requests for a public hearing concerning the proposed exemption should be sent to the
Warning: Do not include any personally identifiable information (such as name, address, or other contact information) or confidential business information that you do not want publicly disclosed. All comments may be posted on the Internet and can be retrieved by most Internet search engines.
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION: This document contains a notice of proposed individual exemption from certain prohibitions described in section 406 of the Act and section 4975 of the Code. /1/ The proposed exemption has been requested in an application filed with the Department by
FOOTNOTE 1 All references to specific provisions of Title I of the Act herein shall refer also to the corresponding provisions of the Code. END FOOTNOTE
The application pertaining to the proposed exemption contains facts and representations with regard to the proposed exemption which are summarized below. Interested persons are referred to the application on file with the Department for a complete statement of the facts and representations. The application pertaining to the proposed exemption and the comments received will be available for public inspection in the
Summary of Facts and Representations
The Parties
1. FDI, a
2. In
In connection with the closing of the sale transaction with Rinker, certain of the assets of FCSH, certain liabilities of FCSH, including all of the obligations of FCSH with respect to the Plan, as well as fewer than twenty (20) employees, were transferred to FDI, which at that time was established as a newly-formed subsidiary of FCSH.
3. As an employer any of whose employees are covered by the Plan, FDI is a party in interest with respect to the Plan, pursuant to 3(14)(C) of the Act. FDI is also a party in interest with respect to the Plan, pursuant to 3(14)(A) of the Act, as the named fiduciary and Plan administrator. The stockholders of FDI are members of the Gregg family or are trusts for the benefit of certain members of the Gregg family. There are 828.70 shares outstanding of FDI. The largest individual shareholders of FDI are Mrs.
4. Among the assets transferred to FDI, and therefore not sold to Rinker in 2000, is
5. In 2007, FDI sold all of its equity interests in FDLC to
Mrs. Strimenos and Mrs. Emack through separate limited liability corporations own, respectively, 40.70 percent (40.70%) and 36.12 percent (36.12%) of the interests in Minneola. Five (5) other Gregg family trusts own 23.18 percent (23.18%) of Minneola. /2/
FOOTNOTE 2 While there is overlapping ownership of FDI and Minneola, it is represented that the ownership of the shareholders of FDI and the members of Minneola is sufficiently diverse such that the two companies, FDI and Minneola, are not members of a "control group," as defined in section 407(d)(7) of the Act. Minneola is a party in interest with respect to the Plan, pursuant to 3(14)(G) of the Act, as 50 percent (50%) or more of the interests in Minneola are owned in the aggregate, directly or indirectly, by Mrs. Strimenos and Mrs. Emack who are each 10 percent (10%) or more shareholders of FDI, the employer. END FOOTNOTE
6. Other entities owned by members of the Gregg family include
The Plan
7. The Plan is a defined benefit pension plan established in 1953 by FCSH to provide benefits to its employees. As a result of the sale of FCSH to Rinker in 2000, FDI became the sponsor of the Plan. The Plan covers approximately 740 former employees of FCSH and current employees of FDI and their beneficiaries, including beneficiaries of deceased participants (based on Form 5500 for plan year 2011). In 2003, the Plan was "frozen" by FDI with the result that there have been no additional accruals and no new participants to the Plan since that time. The trustee of the Plan is Mrs. Strimenos.
The assets of the Plan are currently held through annuity contracts issued by
It is represented that liquidity is not an issue for the Plan. According to the Plan's actuary, the projected benefit payments are approximately
FDI estimates that its annual minimum funding obligation will be
The Notes
--This is a summary of a
Notice of proposed individual exemption.
Citation: "79 FR 43082"
Document Number: "Application No. D-11777"
Federal Register Page Number: "43082"
"Notices"
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