Proposed Extension of Information Collection Request Submitted for Public Comment and Recommendations; PTE 86-128, 17475-17476 [05-6751]

Download as PDF Federal Register / Vol. 70, No. 65 / Wednesday, April 6, 2005 / Notices Federal Register Representative, Liaison and Policy Section (ODL); or any being sent via express mail should be sent to DEA Headquarters, Attention: DEA Federal Register Representative/ODL, 2401 Jefferson-Davis Highway, Alexandria, Virginia 22301; and must be filed no later than (60 days from publication). Send comments to Mr. Gerald B. Lindrew, Office of Policy and Research, U.S. Department of Labor, Employee Benefits Security Administration, 200 Constitution Avenue, NW., Room N– 5647, Washington, DC 20210. Telephone: (202) 693–8410. Fax: (202) 693–4745 (These are not toll-free numbers). Dated: March 29, 2005. William J. Walker, Deputy Assistant Administrator, Office of Diversion Control, Drug Enforcement Administration. [FR Doc. 05–6796 Filed 4–5–05; 8:45 am] SUPPLEMENTARY INFORMATION: I. Background BILLING CODE 4410–09–P DEPARTMENT OF LABOR Employee Benefits Security Administration Proposed Extension of Information Collection Request Submitted for Public Comment and Recommendations; PTE 86–128 ACTION: Notice. SUMMARY: The Department of Labor (Department), as part of its continuing effort to reduce paperwork and respondent burden, conducts a preclearance consultation program to provide the general public and Federal agencies with an opportunity to comment on proposed and continuing collections of information in accordance with the Paperwork Reduction Act of 1995 (PRA 95). This program helps to ensure that requested data can be provided in the desired format, reporting burden (time and financial resources) is minimized, collection instruments are clearly understood, and the impact of collection requirements on respondents can be properly assessed. Currently, the Employee Benefits Security Administration is soliciting comments concerning the proposed extension of a currently approved collection of information, Prohibited Transaction Class Exemption 86–128 for certain transactions involving employee benefit plans and securities brokerdealers. A copy of the proposed information collection request (ICR) can be obtained by contacting the office listed below in the ADDRESSES section of this notice. DATES: Written comments must be submitted to the office listed in the ADDRESSES section below on or before June 6, 2005. ADDRESSES: Interested parties are invited to submit written comments regarding the collection of information. VerDate jul<14>2003 18:17 Apr 05, 2005 Jkt 205001 Prohibited Transaction Class Exemption 86–128 permits persons who serve as fiduciaries for employee benefit plans to effect or execute securities transactions on behalf of employee benefit plans. The exemption also allows sponsors of pooled separate accounts and other pooled investment funds to use their affiliates to effect or execute securities transactions for such accounts in order to recapture brokerage commissions for benefit of employee benefit plans whose assets are maintained in pooled separate accounts managed by the insurance companies. This exemption provides relief from certain prohibitions in section 406(b) of the Employee Retirement Income Security Act of 1974 (ERISA) and from the taxes imposed by section 4975(a) and (b) of the Internal Revenue Code of 1986 (the Code) by reason of Code section 4975(c)(1)(E) or (F). In order to insure that the exemption is not abused, that the rights of participants and beneficiaries are protected, and that the exemption’s conditions are being complied with, the Department has included in the exemption five information collection requirements. The first requirement is written authorization executed in advance by an independent fiduciary of the plan whose assets are involved in the transaction with the brokerfiduciary. The second requirement is, within three months of the authorization, the broker-fiduciary furnish the independent fiduciary with any reasonably available information necessary for the independent fiduciary to determine whether an authorization should be made. The information must include a copy of the exemption, a form for termination, and a description of the broker-fiduciary’s brokerage placement practices. The third requirement is that the broker-fiduciary must provide a termination form to the independent fiduciary annually so that the independent fiduciary may terminate the authorization without penalty to the plan; failure to return the form constitutes continuing authorization. The fourth requirement is for the brokerfiduciary to report all transactions to the PO 00000 Frm 00074 Fmt 4703 Sfmt 4703 17475 independent fiduciary, either by confirmation slips or through quarterly reports. The fifth requirement calls for the broker-fiduciary to provide an annual summary of the transactions. The annual summary must contain all security transaction-related charges incurred by the plan, the brokerage placement practices, and a portfolio turnover ratio. II. Review Focus The Department is particularly interested in comments that: • Evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; • Evaluate the accuracy of the agency’s estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used; • Enhance the quality, utility, and clarity of the information to be collected; and • Minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g., permitting electronic submissions of responses. III. Current Actions The Department is requesting an extension of the currently approved ICR pertaining to Prohibited Transaction Class Exemption 86–128 for certain transactions involving employee benefit plans and securities broker-dealers. The Department is not proposing or implementing changes to the existing ICR at this time. Agency: Department of Labor, Employee Benefits Security Administration. Title: PTE 86–128 for Certain Transactions Involving Employee Benefit Plans and Securities BrokerDealers. Type of Review: Extension of a currently approved collection. OMB Numbers: 1210–0059. Affected Public: Individuals or households; Business or other for-profit; Not-for-profit institutions. Total Respondents: 4,200. Total Responses: 284,000. Frequency of Response: Quarterly; Annually. Total Annual Burden: 93,530 hours. Total Annual Cost (Operating & Maintenance): $183,550. Comments submitted in response to this request will be summarized and/or E:\FR\FM\06APN1.SGM 06APN1 17476 Federal Register / Vol. 70, No. 65 / Wednesday, April 6, 2005 / Notices included in the request for Office of Management and Budget approval of the information collection request; they will also become a matter of public record. Dated: March 31, 2005. Gerald B. Lindrew, Deputy Director, Office of Policy and Research, Employee Benefits Security Administration. [FR Doc. 05–6751 Filed 4–5–05; 8:45 am] BILLING CODE 4510–29–P DEPARTMENT OF LABOR Employee Benefits Security Administration [Application No. D–11261] Proposed Amendment to Prohibited Transaction Exemption 2002–51 (PTE 2002–51) To Permit Certain Transactions Identified in the Voluntary Fiduciary Correction Program Employee Benefits Security Administration, Department of Labor. ACTION: Notice of proposed amendment to PTE 2002–51. AGENCY: SUMMARY: This document contains a notice of pendency before the Department of Labor (the Department) of a proposed amendment to PTE 2002–51 (67 FR 70623 November 25, 2002). PTE 2002–51 is a class exemption that provides relief from certain prohibited transaction restrictions imposed by section 4975 of the Internal Revenue Code (the Code) of 1986 for certain eligible transactions identified in the Department’s Voluntary Fiduciary Correction (VFC) Program, which was adopted on March 28, 2002. This exemption is being proposed in conjunction with the Department’s Amendment and Restatement of the VFC Program (revised VFC Program), which is being published simultaneously in this issue of the Federal Register. The VFC Program allows certain persons to avoid potential civil actions under the Employee Retirement Income Security Act of 1974 (ERISA) initiated by the Department and the assessment of civil penalties under section 502(l) of ERISA in connection with an investigation or civil action by the Department. If granted, the proposed amendment to PTE 2002–51 would affect plans, participants and beneficiaries of such plans and certain other persons engaging in such transactions. Written comments and requests for a public hearing on the proposed DATES: VerDate jul<14>2003 18:17 Apr 05, 2005 Jkt 205001 amendment must be received by the Department by June 6, 2005. ADDRESSES: All written comments and requests for a public hearing (preferably three copies) concerning the proposed amendment should be sent to: U.S. Department of Labor, Employee Benefits Security Administration, Room N–5649, 200 Constitution Avenue, NW., Washington, DC 20210, (Attention: Amendment to the VFC Program Exemption D–11261). Comments and requests for a hearing alternatively may be sent by fax to (202) 219–0204 or submitted electronically to moffitt.betty@dol.gov by the end of the comment period. All comments received from interested persons will be available for public inspection in EBSA’s Public Disclosure Room, N– 1513, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, NW., Washington, DC 20210. FOR FURTHER INFORMATION CONTACT: Brian J. Buyniski, Office of Exemption Determinations, Employee Benefits Security Administration, U.S. Department of Labor, Room N–5649, 200 Constitution Avenue, NW., Washington, DC 20210, (202) 693–8545 (this is not a toll free number). SUPPLEMENTARY INFORMATION: Notice is hereby given of the pendency before the Department of a proposed amendment to PTE 2002–51. PTE 2002–51 provides relief from the sanctions resulting from the application of section 4975(a) and (b) of the Code, by reason of section 4975(c)(1)(A) through (E) of the Code. The proposed amendment would expand the relief under the exemption to additional transactions included in the revised VFC Program. The Department is proposing to amend PTE 2002–51 on its own motion pursuant to section 4975(c)(2) of the Code, and in accordance with the procedures set forth in 29 CFR 2570, subpart B (55 FR 32836, August 10, 1990).1 Executive Order 12866 Statement Under Executive Order 12866, the Department must determine whether a regulatory action is ‘‘significant’’ and therefore subject to the requirements of the Executive Order and subject to review by the Office of Management and Budget (OMB). Under section 3(f) of the Executive Order, a ‘‘significant regulatory action’’ is an action that is likely to result in a rule: (1) Having an 1 Section 102 of Reorganization Plan No. 4 of 1978 (43 FR 47713, October 17, 1978, 5 U.S.C. App. 1 [1996]) generally transferred the authority of the Secretary of the Treasury to issue administrative exemptions under section 4975(c)(2) of the Code of the Secretary of Labor. PO 00000 Frm 00075 Fmt 4703 Sfmt 4703 annual effect on the economy of $100 million or more, or adversely and materially affecting a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local or tribal governments or communities (also referred to as ‘‘economically significant’’); (2) creating serious inconsistency or otherwise interfering with an action taken or planned by another agency; (3) materially altering the budgetary impacts of entitlement grants, user fees, or loan programs or the rights and obligations of recipients thereof; or (4) raising novel legal or policy issues arising out of legal mandates, the President’s priorities, or the principles set forth in the Executive Order. OMB has determined that this proposed amendment is not a ‘‘significant regulatory action’’ under Executive Order 12866, section 3(f). Accordingly, an assessment of the potential costs and benefits under section 6(a)(3) of that order is not required. In order to better inform the public, the Department has, however, included a brief analysis of the applicable costs and benefits of the proposed amendment. PTE 2002–51 provides relief from the sanctions resulting from the application of section 4975(a) and (b) of the Code, by reason of section 4975(c)(1)(A) through (E) of the Code. In general, the exemption enhances the benefits of participation in the VFC Program by granting relief from excise taxes under section 4975 for breaches of fiduciary duty that are prohibited transactions. The class exemption will have positive economic effects by eliminating such excise taxes and promoting increased participation in the VFC Program. The purpose of the VFC Program is to encourage the correction of breaches of fiduciary duty, resulting in the recovery of lost earnings or profits for the benefit of plan participants and beneficiaries. The Department has assumed that not all Plan Officials that apply to the VFC Program will necessarily take advantage of the excise tax relief provided under the exemption, either by choice or because the corrected transaction is not an eligible transaction to which this exemption applies. The Department has assumed that as many as one half of all applicants who take the opportunity to voluntarily correct a violation under the Program, or 350 Plan Officials annually, will choose to avail themselves of the opportunity for excise tax relief. This amendment to PTE 2002–51 is proposed in connection with the Amendment and Restatement of the VFC Program (revised VFC Program), which is published in this issue of the E:\FR\FM\06APN1.SGM 06APN1

Agencies

[Federal Register Volume 70, Number 65 (Wednesday, April 6, 2005)]
[Notices]
[Pages 17475-17476]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-6751]


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DEPARTMENT OF LABOR

Employee Benefits Security Administration


Proposed Extension of Information Collection Request Submitted 
for Public Comment and Recommendations; PTE 86-128

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Department of Labor (Department), as part of its 
continuing effort to reduce paperwork and respondent burden, conducts a 
preclearance consultation program to provide the general public and 
Federal agencies with an opportunity to comment on proposed and 
continuing collections of information in accordance with the Paperwork 
Reduction Act of 1995 (PRA 95). This program helps to ensure that 
requested data can be provided in the desired format, reporting burden 
(time and financial resources) is minimized, collection instruments are 
clearly understood, and the impact of collection requirements on 
respondents can be properly assessed. Currently, the Employee Benefits 
Security Administration is soliciting comments concerning the proposed 
extension of a currently approved collection of information, Prohibited 
Transaction Class Exemption 86-128 for certain transactions involving 
employee benefit plans and securities broker-dealers.
    A copy of the proposed information collection request (ICR) can be 
obtained by contacting the office listed below in the addresses section 
of this notice.

DATES: Written comments must be submitted to the office listed in the 
ADDRESSES section below on or before June 6, 2005.

ADDRESSES: Interested parties are invited to submit written comments 
regarding the collection of information. Send comments to Mr. Gerald B. 
Lindrew, Office of Policy and Research, U.S. Department of Labor, 
Employee Benefits Security Administration, 200 Constitution Avenue, 
NW., Room N-5647, Washington, DC 20210. Telephone: (202) 693-8410. Fax: 
(202) 693-4745 (These are not toll-free numbers).

SUPPLEMENTARY INFORMATION:

I. Background

    Prohibited Transaction Class Exemption 86-128 permits persons who 
serve as fiduciaries for employee benefit plans to effect or execute 
securities transactions on behalf of employee benefit plans. The 
exemption also allows sponsors of pooled separate accounts and other 
pooled investment funds to use their affiliates to effect or execute 
securities transactions for such accounts in order to recapture 
brokerage commissions for benefit of employee benefit plans whose 
assets are maintained in pooled separate accounts managed by the 
insurance companies. This exemption provides relief from certain 
prohibitions in section 406(b) of the Employee Retirement Income 
Security Act of 1974 (ERISA) and from the taxes imposed by section 
4975(a) and (b) of the Internal Revenue Code of 1986 (the Code) by 
reason of Code section 4975(c)(1)(E) or (F).
    In order to insure that the exemption is not abused, that the 
rights of participants and beneficiaries are protected, and that the 
exemption's conditions are being complied with, the Department has 
included in the exemption five information collection requirements. The 
first requirement is written authorization executed in advance by an 
independent fiduciary of the plan whose assets are involved in the 
transaction with the broker-fiduciary. The second requirement is, 
within three months of the authorization, the broker-fiduciary furnish 
the independent fiduciary with any reasonably available information 
necessary for the independent fiduciary to determine whether an 
authorization should be made. The information must include a copy of 
the exemption, a form for termination, and a description of the broker-
fiduciary's brokerage placement practices. The third requirement is 
that the broker-fiduciary must provide a termination form to the 
independent fiduciary annually so that the independent fiduciary may 
terminate the authorization without penalty to the plan; failure to 
return the form constitutes continuing authorization. The fourth 
requirement is for the broker-fiduciary to report all transactions to 
the independent fiduciary, either by confirmation slips or through 
quarterly reports. The fifth requirement calls for the broker-fiduciary 
to provide an annual summary of the transactions. The annual summary 
must contain all security transaction-related charges incurred by the 
plan, the brokerage placement practices, and a portfolio turnover 
ratio.

II. Review Focus

    The Department is particularly interested in comments that:
     Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
     Evaluate the accuracy of the agency's estimate of the 
burden of the proposed collection of information, including the 
validity of the methodology and assumptions used;
     Enhance the quality, utility, and clarity of the 
information to be collected; and
     Minimize the burden of the collection of information on 
those who are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology, e.g., permitting 
electronic submissions of responses.

III. Current Actions

    The Department is requesting an extension of the currently approved 
ICR pertaining to Prohibited Transaction Class Exemption 86-128 for 
certain transactions involving employee benefit plans and securities 
broker-dealers. The Department is not proposing or implementing changes 
to the existing ICR at this time.
    Agency: Department of Labor, Employee Benefits Security 
Administration.
    Title: PTE 86-128 for Certain Transactions Involving Employee 
Benefit Plans and Securities Broker-Dealers.
    Type of Review: Extension of a currently approved collection.
    OMB Numbers: 1210-0059.
    Affected Public: Individuals or households; Business or other for-
profit; Not-for-profit institutions.
    Total Respondents: 4,200.
    Total Responses: 284,000.
    Frequency of Response: Quarterly; Annually.
    Total Annual Burden: 93,530 hours.
    Total Annual Cost (Operating & Maintenance): $183,550.
    Comments submitted in response to this request will be summarized 
and/or

[[Page 17476]]

included in the request for Office of Management and Budget approval of 
the information collection request; they will also become a matter of 
public record.

    Dated: March 31, 2005.
Gerald B. Lindrew,
Deputy Director, Office of Policy and Research, Employee Benefits 
Security Administration.
[FR Doc. 05-6751 Filed 4-5-05; 8:45 am]
BILLING CODE 4510-29-P

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