2026-11134NoticeWallet

Union Fund Wants Permission to Buy From Itself

Published Date: 6/3/2026

Notice

Summary

The International Brotherhood of Electrical Workers Local Union No. 99 Fund in Rhode Island wants to buy property from their own Realty Corporation, which usually isn’t allowed under the rules. If approved, this deal could save the Fund about $45,000 every year. People have until July 20, 2026, to share their thoughts or ask for a hearing before the exemption takes effect.

Analyzed Economic Effects

5 provisions identified: 5 benefits, 0 costs, 0 mixed.

Purchase Price Limit: $1,610,000 or FMV

Under the proposed exemption the Fund would pay the lesser of (1) $1,610,000 or (2) the fair market value determined by a qualified independent appraiser in an appraisal updated as of the date of the Purchase. The Independent Appraiser must be independent and must provide an updated appraisal on the date of closing.

Fund May Buy Union-Owned Training Building

If the Department grants the exemption, the International Brotherhood of Electrical Workers Local Union No. 99 Joint Apprenticeship Training Committee Fund may buy the training building at 40 Western Industrial Drive in Cranston, Rhode Island from Local Union 99 Realty Corporation even though that sale would otherwise be barred by ERISA. The Purchase must be a one-time transaction for cash (or financed only with an unrelated third-party bank on prudent terms) and the Fund must pay no unnecessary fees to any party in interest.

Fund Saves About $45,000 Per Year

The Independent Fiduciary concluded the Purchase would decrease total annual expenses for the Fund by approximately $45,000 per year on average. The Fund had $4,924,206 in total assets and about 800 participants as of December 31, 2024.

One-Time Closing Cost Savings (~$52,500)

The Independent Fiduciary estimates the Purchase will save the Fund approximately $52,500 in closing-related expenses compared to buying a similar property from a third party. The Independent Fiduciary used a hypothetical total closing cost of $105,000 (including an estimated brokerage fee of $84,600 and Rhode Island conveyance tax at stated rates) as context for that comparison.

Independent Oversight and Record Rules Protect Participants

The exemption would require a qualified independent fiduciary (hired by the Employer Trustees) to approve the Purchase in writing, an independent appraiser to update fair market value as of the date of Purchase, and maintained records for six years. The Independent Fiduciary must deliver a final report to the Department within 60 days of closing and the Fund must provide requested records to the Department within 30 days.

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Key Dates

Published Date
6/3/2026

Department and Agencies

Department
Independent Agency
Agency
Labor Department
Employee Benefits Security Administration
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