Proposed Extension of Information Collection Request Submitted for Public Comment and Recommendations Prohibited Transaction Class Exemption 81-8, 72763-72764 [E7-24804]

Download as PDF Federal Register / Vol. 72, No. 245 / Friday, December 21, 2007 / Notices Written comments must be submitted to the office listed in the ADDRESSES section below on or before February 19, 2008. 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– 5718, Washington, DC 20210. Telephone: (202) 693–8410 Fax: (202) 693–4745 (These are not toll-free numbers). DATES: SUPPLEMENTARY INFORMATION: I. Background Without the relief provided by this exemption, an open-end mutual fund would be unable to sell shares to or purchase shares from a plan when the fiduciary with respect to the plan is also the investment advisor for the mutual fund. As a result, plans would be compelled to liquidate their existing investments involving such transactions and to amend their plan documents to establish new investment structures and policies. In order to insure that the exemption is not abused and that the rights of participants and beneficiaries are protected, the Department has included in the exemption three basic disclosure requirements. The first requires at the time of the purchase or sale of such mutual fund shares that the plan’s independent fiduciary receive a copy of the current prospectus issued by the open-end mutual fund and a full and detailed written statement of the investment advisory fees charges to or paid by the plan and the open-end mutual fund to the investment advisor. The second requires that the independent fiduciary approve in writing such purchases and sales. The third requires that the independent fiduciary, once notified of changes in the fees, re-approve in writing the purchase and sale of mutual fund shares. 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 Office of Management and Budget’s approval of this ICR will expire on April 30, 2008. This notice requests comments on the extension of the ICR. The Department is not proposing or implementing changes to the existing ICR at this time in connection with this extension. Comments submitted in response to this notice will be summarized and/or included in the request for OMB approval of the information collection request; they will also become a matter of public record. Agency: Department of Labor, Employee Benefits Security Administration. Title: Prohibited Transaction Class Exemption 77–4 for Certain Transactions Between Investment Companies and Employee Benefit Plans. Type of Review: Extension of currently approved collections. OMB Numbers: 1210–0049. Affected Public: Individuals or households; Business or other for-profit; Not-for-profit institutions. Total Respondents: 431. Total Responses: 82,000. Frequency of Response: On occasion. Average Time Per Response: 5 minutes. Total Annual Burden: 7,000 hours. Dated: December 10, 2007. Joseph S. Piacentini, Director, Office of Policy and Research, Employee Benefits SecurityAdministration. [FR Doc. E7–24803 Filed 12–20–07; 8:45 am] BILLING CODE 4510–29–P mstockstill on PROD1PC66 with NOTICES II. Review Focus The Department of Labor (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, VerDate Aug<31>2005 18:37 Dec 20, 2007 Jkt 214001 DEPARTMENT OF LABOR Employee Benefits Security Administration Proposed Extension of Information Collection Request Submitted for Public Comment and Recommendations Prohibited Transaction Class Exemption 81–8 Employee Benefits Security Administration, Department of Labor. AGENCY: PO 00000 Frm 00099 Fmt 4703 Sfmt 4703 ACTION: 72763 Notice. SUMMARY: The Department of Labor, as part of its continuing effort to reduce paperwork and respondent burden conducts a preclearance consultation program to provide the general public and other 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) (44 U.S.C. 3506(c)(2)(A)). 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 81–8 on investment of plan assets in certain types of short-term investments. 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 on or before February 19, 2008. ADDRESSES: Mr. Gerald B. Lindrew, Office of Policy and Research, U.S. Department of Labor, Employee Benefits Security Administration, 200 Constitution Avenue, NW., Room N– 5718, 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 81–8 permits the investment of plan assets that involve the purchase or other acquisition, holding, sale, exchange or redemption by or on behalf of an employee benefit plan in certain types of short-term investments. These include investments in banker’s acceptances, commercial paper, repurchase agreements, certificates of deposit, and bank securities. Absent the exemption, certain aspects of these transactions might be prohibited by section 406 of the Employee Retirement Income Security Act (ERISA). Provided that the requirements of the exemption are met, the exemption allows plans to invest in certain short term investments in debt obligations issued by certain persons who provide E:\FR\FM\21DEN1.SGM 21DEN1 72764 Federal Register / Vol. 72, No. 245 / Friday, December 21, 2007 / Notices mstockstill on PROD1PC66 with NOTICES services to the plan or who are affiliated with such service providers that otherwise might be prohibited under sections 406 and 407(a) of ERISA. Without this exemption, these types of short term transactions might not be permitted. In order to ensure that the exemption is not abused, that the rights of participants and beneficiaries are protected, and that the conditions of the exemption have been satisfied, the Department has included in the exemption two basic disclosure requirements. Both affect only the portion of the exemption dealing with repurchase agreements. The first requirement calls for the repurchase agreements between the seller and the plan to be in writing. The second requirement obliges the seller of such repurchase agreements to agree to provide financial statements to the plan at the time of the sale and as future statements are issued. The seller must also represent, either in the repurchase agreement or prior to the negotiation of each repurchase agreement transaction, that there has been no material adverse change in the seller’s financial condition since the date that the most recent financial statement was furnished which has not been disclosed to the plan fiduciary with whom the written agreement is made. Without the recording and disclosure requirements included in this ICR, participants and beneficiaries of a plan would not be protected in their investments, the Department would be unable to monitor a plan’s activities for compliance, and plans would be at a disadvantage in assessing the value of certain short-term investment activities. II. Desired Focus of Comments The Department of Labor 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; • 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 VerDate Aug<31>2005 18:37 Dec 20, 2007 Jkt 214001 other forms of information technology, e.g., permitting electronic submission of responses. III. Current Actions The Office of Management and Budget’s (OMB) approval of this ICR will expire on March 31, 2008. After considering comments received in response to this notice, the Department intends to submit the ICR to OMB for continuing approval. No change to the existing ICR is proposed or made at this time. Comments submitted in response to this notice will be summarized and/ or 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. Agency: Department of Labor, Employee Benefits Security Administration. Title: Prohibited Transaction Class Exemption 81–8 for Investment of Plan Assets in Certain Types of Short-Term Investments. Type of Review: Extension of a currently approved collection of information. OMB Number: 1210–0061. Affected Public: Individuals or households; Business or other for-profit; Not-for-profit institutions. Total Respondents: 45,969. Total Responses: 229,845. Frequency of Response: On occasion. Estimated Burden Hours: 31,900. Estimated Burden Costs: $85,000. Dated: December 10, 2007. Joseph S. Piacentini, Director, Employee Benefits Security Administration, Office of Policy and Research. [FR Doc. E7–24804 Filed 12–20–07; 8:45 am] BILLING CODE 4510–29–P DEPARTMENT OF LABOR Employee Benefits Security Administration Proposed Extension of Information Collection Request Submitted for Public Comment and Recommendations: Prohibited Transaction Class Exemption 96–62 Employee Benefits Security Administration, Department of Labor. ACTION: Notice. AGENCY: SUMMARY: The Department of Labor, 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 PO 00000 Frm 00100 Fmt 4703 Sfmt 4703 and continuing collections of information in accordance with the Paperwork Reduction Act of 1995 (PRA 95) (44 U.S.C. 3506(c)(2)(A)). This 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 extension of a currently approved collection of information, Prohibited Transaction Class Exemption 96–62. 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 on or before February 19, 2008. ADDRESSES: Gerald B. Lindrew, Office of Policy and Research, U.S. Department of Labor, Employee Benefits Security Administration, 200 Constitution Avenue, NW., Room N–5718, Washington, DC 20210, (202) 693–8410, FAX (202) 693–4745. These are not tollfree numbers. SUPPLEMENTARY INFORMATION: I. Background Section 408(a) of the Employee Retirement Income Security Act of 1974 (ERISA) provides that the Secretary of Labor may grant exemptions from the prohibited transaction provisions of sections 406 and 407(a) of ERISA, and directs the Secretary to establish an exemption procedure with respect to such provisions. On July 31, 1996, the Department published Prohibited Transaction Exemption 96–62, which, pursuant to the exemption procedure set forth in 29 CFR 2570, subpart B, permits a plan to seek approval on an accelerated basis of otherwise prohibited transactions. A class exemption will only be granted on the conditions that the plan demonstrate to the Department that the transaction is substantially similar to those described in at least two prior individual exemptions granted by the Department and that it presents little, if any, opportunity for abuse or risk of loss to a plan’s participants and beneficiaries. This ICR is intended to provide the Department with sufficient information to support a finding that the exemption meets the statutory standards of section 408(a) of ERISA, and to provide affected parties with the opportunity to comment on the proposed transaction, while at the same time reducing the E:\FR\FM\21DEN1.SGM 21DEN1

Agencies

[Federal Register Volume 72, Number 245 (Friday, December 21, 2007)]
[Notices]
[Pages 72763-72764]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-24804]


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DEPARTMENT OF LABOR

Employee Benefits Security Administration


Proposed Extension of Information Collection Request Submitted 
for Public Comment and Recommendations Prohibited Transaction Class 
Exemption 81-8

AGENCY: Employee Benefits Security Administration, Department of Labor.

ACTION: Notice.

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

SUMMARY: The Department of Labor, as part of its continuing effort to 
reduce paperwork and respondent burden conducts a preclearance 
consultation program to provide the general public and other 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) (44 U.S.C. 3506(c)(2)(A)). 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 81-8 on investment of plan assets in certain types of short-
term investments. 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 on or before February 19, 
2008.

ADDRESSES: Mr. Gerald B. Lindrew, Office of Policy and Research, U.S. 
Department of Labor, Employee Benefits Security Administration, 200 
Constitution Avenue, NW., Room N-5718, 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 81-8 permits the investment 
of plan assets that involve the purchase or other acquisition, holding, 
sale, exchange or redemption by or on behalf of an employee benefit 
plan in certain types of short-term investments. These include 
investments in banker's acceptances, commercial paper, repurchase 
agreements, certificates of deposit, and bank securities. Absent the 
exemption, certain aspects of these transactions might be prohibited by 
section 406 of the Employee Retirement Income Security Act (ERISA).
    Provided that the requirements of the exemption are met, the 
exemption allows plans to invest in certain short term investments in 
debt obligations issued by certain persons who provide

[[Page 72764]]

services to the plan or who are affiliated with such service providers 
that otherwise might be prohibited under sections 406 and 407(a) of 
ERISA. Without this exemption, these types of short term transactions 
might not be permitted.
    In order to ensure that the exemption is not abused, that the 
rights of participants and beneficiaries are protected, and that the 
conditions of the exemption have been satisfied, the Department has 
included in the exemption two basic disclosure requirements. Both 
affect only the portion of the exemption dealing with repurchase 
agreements. The first requirement calls for the repurchase agreements 
between the seller and the plan to be in writing. The second 
requirement obliges the seller of such repurchase agreements to agree 
to provide financial statements to the plan at the time of the sale and 
as future statements are issued. The seller must also represent, either 
in the repurchase agreement or prior to the negotiation of each 
repurchase agreement transaction, that there has been no material 
adverse change in the seller's financial condition since the date that 
the most recent financial statement was furnished which has not been 
disclosed to the plan fiduciary with whom the written agreement is 
made.
    Without the recording and disclosure requirements included in this 
ICR, participants and beneficiaries of a plan would not be protected in 
their investments, the Department would be unable to monitor a plan's 
activities for compliance, and plans would be at a disadvantage in 
assessing the value of certain short-term investment activities.

II. Desired Focus of Comments

    The Department of Labor 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;
     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 submission of responses.

III. Current Actions

    The Office of Management and Budget's (OMB) approval of this ICR 
will expire on March 31, 2008. After considering comments received in 
response to this notice, the Department intends to submit the ICR to 
OMB for continuing approval. No change to the existing ICR is proposed 
or made at this time. Comments submitted in response to this notice 
will be summarized and/or 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.
    Agency: Department of Labor, Employee Benefits Security 
Administration.
    Title: Prohibited Transaction Class Exemption 81-8 for Investment 
of Plan Assets in Certain Types of Short-Term Investments.
    Type of Review: Extension of a currently approved collection of 
information.
    OMB Number: 1210-0061.
    Affected Public: Individuals or households; Business or other for-
profit; Not-for-profit institutions.
    Total Respondents: 45,969.
    Total Responses: 229,845.
    Frequency of Response: On occasion.
    Estimated Burden Hours: 31,900.
    Estimated Burden Costs: $85,000.

    Dated: December 10, 2007.
Joseph S. Piacentini,
Director, Employee Benefits Security Administration, Office of Policy 
and Research.
[FR Doc. E7-24804 Filed 12-20-07; 8:45 am]
BILLING CODE 4510-29-P

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