Proposed Extension of Information Collection Request Submitted for Public Comment; Proposed Amendment to PTE 84-14 for Plan Asset Transactions Determined by Independent Qualified Professional Asset Managers, 40384 [E8-15848]

Agencies

• Employee Benefits Security Administration
• DEPARTMENT OF LABOR

[Federal Register Volume 73, Number 135 (Monday, July 14, 2008)]
[Notices]
[Page 40384]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-15848]



[[Page 40384]]

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DEPARTMENT OF LABOR

Employee Benefits Security Administration


Proposed Extension of Information Collection Request Submitted 
for Public Comment; Proposed Amendment to PTE 84-14 for Plan Asset 
Transactions Determined by Independent Qualified Professional Asset 
Managers

AGENCY: Employee Benefits Security Administration, Department of Labor.

ACTION: Notice.

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SUMMARY: The Department of Labor (the Department), in accordance with 
the Paperwork Reduction Act of 1995 (PRA 95) (44 U.S.C. 3506(c)(2)(A)), 
provides the general public and Federal agencies with an opportunity to 
comment on proposed and continuing collections of information. This 
helps the Department assess the impact of its information collection 
requirements and minimize the reporting burden on the public and helps 
the public understand the Department's information collection 
requirements and provide the requested data in the desired format. 
Currently, the Employee Benefits Security Administration is soliciting 
comments on the proposed extension of the information collection 
provisions of Proposed Amendment to PTE 84-14 for Plan Asset 
Transactions Determined by Independent Qualified Professional Asset 
Managers. A copy of the information collection request (ICR) may be 
obtained by contacting the office listed in the ADDRESSES section of 
this notice.

DATES: Written comments must be submitted to the office shown in the 
Addresses section on or before September 9, 2008.

ADDRESSES: Joseph S. Piacentini, Department of Labor, Employee Benefits 
Security Administration, 200 Constitution Avenue, NW., Washington, DC 
20210, (202) 693-8410, FAX (202) 693-4745 (these are not toll-free 
numbers).

SUPPLEMENTARY INFORMATION:

I. Background

    PTE 84-14 is a class exemption from ERISA's prohibited transaction 
rules that permits various parties that are related to employee benefit 
plans to engage in transactions involving plan assets if, among other 
conditions, the assets are managed by ``qualified professional asset 
managers'' (QPAMs), which are independent of the parties in interest 
and which meet specified financial standards. Additional exemptive 
relief is provided for employers to furnish limited amounts of goods 
and services to a managed fund in the ordinary course of business. 
Limited relief also is provided for leases of office or commercial 
space between managed funds and QPAMs or contributing employers. 
Finally, relief is provided for transactions involving places of public 
accommodation owned by a managed fund.
    The proposed amendment to PTE 84-14 (70 FR 49305, August 23, 2005) 
would permit a ``qualified professional asset manager'' (QPAM) to 
prospectively manage an investment fund containing the assets of its 
own employee benefit plan or the plan of an affiliate, to the extent 
that the conditions of the proposal have been met. Under section 406(a) 
of ERISA, sales, leases, loans or the provision of services between a 
party in interest and a plan, as well as a use of plan assets by or for 
the benefit of, or a transfer of plan assets to, a party in interest, 
is prohibited. Section 408(a) of ERISA permits the Department to grant 
an exemption from a prohibited transaction provision where it has been 
able to determine that certain criteria for granting such exemptions 
have been satisfied. Without the proposed amendment, a financial 
institution that acted as a QPAM for its own plan, prospectively, would 
be in violation of section 406(a).
    In order for a transaction to qualify for an exemption under the 
proposed amendment, a QPAM must, among other requirements, establish 
written policies and procedures that are designed to assure compliance 
with the conditions of the proposed amendment, including the steps 
adopted by the QPAM to measure compliance. The proposed amendment also 
requires an independent auditor required to conduct an exemption audit, 
on an annual basis, the results of which are presented in a written 
report to the plan.
    These requirements constitute an information collection within the 
meaning of the PRA, for which the Department has obtained approval from 
the Office of Management and Budget (OMB) under OMB Control No. 1210-
0128. The OMB approval is currently scheduled to expire on October 31, 
2008.

II. Current Actions

    This notice requests public comment pertaining to the Department's 
request for extension of OMB approval of the information collection 
contained in the proposed amendment to PTE 84-14. After considering 
comments received in response to this notice, the Department intends to 
submit an ICR to OMB for continuing approval. No change to the existing 
ICR is proposed or made at this time. An agency may not conduct or 
sponsor, and a person is not required to respond to, an information 
collection unless it displays a valid OMB control number. A summary of 
the ICR and the current burden estimates follows:
    Agency: Employee Benefits Security Administration, Department of 
Labor.
    Title: Proposed Amendment to Prohibited Transaction Class Exemption 
84-14.
    Type of Review: Extension of a currently approved collection of 
information.
    OMB Number: 1210-0218.
    Affected Public: Individuals or households; Business or other for-
profit; Not-for-profit institutions.
    Respondents: 6,500.
    Responses: 6,500.
    Estimated Total Burden Hours: 6,500.
    Estimated Total Burden Cost (Operating and Maintenance): $546,000.

III. Focus of Comments

    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, 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., by 
permitting electronic submissions of responses.
    Comments submitted in response to this notice will be summarized 
and/or included in the ICR for OMB approval of the extension of the 
information collection; they will also become a matter of public 
record.

    Dated: July 8, 2008.
Joseph S. Piacentini,
Director, Office of Policy and Research, Employee Benefits Security 
Administration.
[FR Doc. E8-15848 Filed 7-11-08; 8:45 am]
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