Puerto Rico 401(k) Gets ERISA Nod for Stock Shenanigans
Published Date: 8/21/2026
Notice
Summary
This exemption permits the Plan's prior acquisition, holding, and sale of certain stock rights (the Rights) to purchase shares of stock in Liberty Latin America Ltd. (LLA). Absent an exemption, these transactions would be prohibited by the Employee Retirement Income Security Act of 1974 (ERISA) and/or the Internal Revenue Code of 1986 (the Code).
Analyzed Economic Effects
4 provisions identified: 2 benefits, 2 costs, 0 mixed.
401(k) Participants Received Sale Proceeds
If you were a participant in the Liberty Puerto Rico 401(k) plan, the Plan sold stock subscription Rights during September 10–16, 2020 and participants received net proceeds of $1.062675 per Right. In total, Plan participants received $6,550.33 that was allocated to their accounts.
Sale Fees Deducted From Participant Proceeds
When the Plan sold the Rights, the Plan did not pay brokerage or subscription fees, but participants had the Securities and Exchange Commission fee and a broker commission (to National Financial Services, LLC) charged against the price they received. Those fees were deducted from each participant's sale proceeds.
Participant Access to Transaction Records
The company (LLA) must keep records about these Rights transactions for six years from the publication date and participants may inspect those records during normal business hours. The Department can also request those records and the Plan must provide them within 30 days of the request.
Participants Could Not Exercise Discounted Purchase Rights
Although each Right allowed purchase of one Series C LLA share for $7.14 (a 25% discount to the referenced trading price), Plan participants were not permitted to exercise the Rights because the Plan did not allow new investments. Instead, the Rights were sold on the open market for participants.
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Previous: 2026-17142, Exemption Involving Hawai'i Pacific Health and Its Subsidiary: Straub Clinic & Hospital Located in Honolulu, Hawaii
This exemption permits the Hawai[revaps]i Pacific Health Retirement Plan (the Plan) to sell property (the Property) to Straub Clinic & Hospital (Straub) for the greater of $16,247,000 or 110% of the Appraised Value of the Property as of the date of the sale (the Sale). Absent this exemption, the Sale would violate certain prohibited transaction restrictions of the Employee Retirement Income Security Act of 1974 (ERISA) and/or the Internal Revenue Code of 1986 (the Code).
Next: 2026-17144, Exemption for Certain Prohibited Transactions Involving Mid-America Carpenters Regional Council Apprentice and Training Fund (the Fund or Applicant) Located in St. Louis, Missouri
This exemption permits the sale by the Fund of real property to the Mid-America Carpenters Regional Council (the Sale). Without this exemption, the Sale would be prohibited by the Employee Retirement Income Security Act of 1974 (ERISA).