Investment Advice-Participants and Beneficiaries, 59092-59093 [E9-27532]
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jlentini on DSKJ8SOYB1PROD with RULES
59092
Federal Register / Vol. 74, No. 220 / Tuesday, November 17, 2009 / Rules and Regulations
manner as provided in the instructions
thereto.
(b) Requirement of statement with
respect to stock purchased under an
employee stock purchase plan under
section 6039(a)(2). (1) Every corporation
filing a return under § 1.6039–1(b) shall
furnish to each person whose name is
set forth in such return a written
statement with respect to the transfer or
transfers made by such person during
such year. This statement must include
the information described in § 1.6039–
1(b)(1).
(2) Each statement required by this
paragraph (b) to be furnished to any
person must be furnished to such
person on Form 3922, Transfer of Stock
Acquired Through an Employee Stock
Purchase Plan Under Section 423(c) (or
its designated successor) and be
delivered at such time and in such
manner as provided in the instructions
thereto.
(3) If the statement required by this
paragraph is made by the authorized
transfer agent of the corporation, it is
deemed to have been made by the
corporation. The term transfer agent, as
used in this section, means any designee
authorized to keep the stock ownership
records of a corporation and to record a
transfer of title of the stock of such
corporation on behalf of such
corporation.
(c) Time for furnishing statements—
(1) In general. Each statement required
by this section to be furnished to any
person for a calendar year must be
furnished to such person on or before
January 31 of the year following the year
for which the statement is required.
(2) Extension of time. An extension of
time to furnish statements required by
this section may be granted in
accordance with the guidelines and
procedures set forth in the instructions
to Form 3921 and Form 3922.
(d) Penalty. For provisions relating to
the penalty applicable to the failure to
furnish a statement under this section,
see section 6722.
(e) Effective/applicability date—(1) In
general. This section is effective on
November 17, 2009. This section will
apply as of January 1, 2007.
(2) Reliance and transition period.
Notwithstanding § 1.6039–1(g),
corporations must furnish information
statements to employees in accordance
with this section for stock transfers that
are subject to § 1.6039–1(a) and (b), and
occur during the 2007, 2008 and 2009
calendar years. For purposes of
furnishing information statements for
stock transfers that occur during the
2007 or 2008 calendar years, taxpayers
may rely on § 1.6039–1 of the 2004 final
regulations (69 FR 46401) or § 1.6039–
VerDate Nov<24>2008
15:56 Nov 16, 2009
Jkt 220001
2 of the 2008 proposed regulations
REG–103146–08 (73 FR 40999). For
purposes of furnishing information
statements for stock transfers that occur
during the 2009 calendar year, taxpayers
may rely on § 1.6039–1 of the 2004 final
regulations (69 FR 46401), § 1.6039–2 of
the 2008 proposed regulations (REG–
103146–08) (73 FR 40999), or this
section.
Linda E. Stiff,
Deputy Commissioner for Services and
Enforcement.
Approved: November 9, 2009.
Michael Mandaca,
Acting Assistant Secretary of the Treasury
(Tax Policy).
[FR Doc. E9–27451 Filed 11–16–09; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF LABOR
Employee Benefits Security
Administration
29 CFR 2550
RIN 1210–AB13
Investment Advice—Participants and
Beneficiaries
AGENCY: Employee Benefits Security
Administration, Labor.
ACTION: Final rule; delay of effective and
applicability date.
SUMMARY: This document delays the
effective and applicability dates of final
rules under the Employee Retirement
Income Security Act, and parallel
provisions of the Internal Revenue Code
of 1986, relating to the provision of
investment advice to participants and
beneficiaries in individual account
plans, such as 401(k) plans, and
beneficiaries of individual retirement
accounts (and certain similar plans).
These rules were published in the
Federal Register on January 21, 2009.
The effective and applicability dates of
the final rules were deferred until
November 18, 2009, in order to permit
a review of policy and legal issues
raised with respect to the rules. This
document further delays the effective
and applicability dates of these final
rules from November 18, 2009, until
May 17, 2010, to allow additional time
for the Department to complete its
analysis of questions of law and policy
concerning the rules.
DATES: The effective and applicability
date of the rule amending 29 CFR Part
2550, published January 21, 2009, at 74
FR 3822, delayed March 20, 2009, at 74
FR 11847, and May 22, 2009, at 74 FR
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23951, is further delayed until May 17,
2010.
FOR FURTHER INFORMATION CONTACT: Fred
Wong, Office of Regulations and
Interpretations, Employee Benefits
Security Administration (EBSA), (202)
693–8500. This is not a toll-free number.
SUPPLEMENTARY INFORMATION:
On January 21, 2009, the Department
of Labor published final rules on the
provision of investment advice to
participants and beneficiaries of
participant-directed individual account
plans and to beneficiaries of individual
retirement accounts and certain similar
plans (IRAs) (74 FR 3822). The rules
implement a statutory prohibited
transaction exemption under ERISA
Sec. 408(b)(14) and Sec. 408(g), and
under section 4975 of the Internal
Revenue Code of 1986 (Code),1 and also
contain an administrative class
exemption granting additional relief. As
published, these rules were to be
effective on March 23, 2009. Paragraph
(g) of Sec. 2550.408g–1 provided that
the rule would apply to covered
transactions occurring on or after March
23, 2009.
By memorandum dated January 20,
2009, Rahm Emanuel, Assistant to the
President and Chief of Staff, directed
Agency Heads to consider extending for
60 days the effective date of regulations
that have been published in the Federal
Register but not yet taken effect. The
memorandum further advised that,
where such regulations are extended,
agencies should allow 30 days for
interested persons to comment on issues
of law and policy raised by the rules. In
accordance with that memorandum, and
taking into account the considerations
listed in the Memorandum of January
21, 2009, from Peter R. Orszag, Director
of the Office of Management and
Budget, the Department published in
the Federal Register on February 4,
2009, a document seeking comment on
a proposed 60-day extension of the
effective dates for these rules until May
22, 2009, and a proposed conforming
amendment to the applicability date of
Sec. 2550.408g–1 (74 FR 6007). The
document also requested comment on
issues of law and policy raised by the
final rules. The Department indicated
that upon completion of its review, it
might decide to allow the rules to take
effect, issue a further extension,
withdraw the rules, or propose
amendments, and solicited comment on
each of these possible outcomes. In
response to this invitation, the
Department received 28 comment
1 These provisions were added to ERISA and the
Code by the Pension Protection Act of 2006 (PPA),
Public Law 109–280, 120 Stat. 780 (Aug. 17, 2006).
E:\FR\FM\17NOR1.SGM
17NOR1
Federal Register / Vol. 74, No. 220 / Tuesday, November 17, 2009 / Rules and Regulations
letters.2 A number of these comments
expressed the view that the final rules
raise significant issues of law and
policy. Among these, some expressed
disagreement with the final rules’
interpretation of the statutory
exemption, and further questioned the
adequacy of the class exemption’s
conditions in mitigating against the
potential for investment adviser selfdealing.
On March 20, 2009, the Department
adopted the 60-day extension of the
final rule’s effective and applicability
date for agency review of questions of
law and policy raised by commenters
(74 FR 11847). On May 22, 2009, in
order to afford the Department
additional time to consider the issues
raised by commenters, the Department
adopted a further delay of these dates
until November 18, 2009 (74 FR 23951).
The Department believes that the
complexity and significance of the
issues involved justify delaying the
effective and applicability dates of the
final rule for an additional 180 days.
This additional time will allow the
Department to complete its analysis of
the issues of law and policy and
determine the appropriate steps to be
taken. Accordingly, the Department is
adopting herein a 180 day delay of the
effective and applicability date of the
final rule published on January 21,
2009. With the adoption of this delay,
the effective and applicability date of
the final rule will be May 17, 2010.
List of Subjects in 29 CFR Part 2550
Employee benefit plans, Exemptions,
Fiduciaries, Investments, Pensions,
Prohibited transactions, Reporting and
recordkeeping requirements, and
Securities.
■ For the reasons set forth above, the
publication on January 21, 2009 (74 FR
3822), of the final rule amending 29 CFR
Part 2550, is further amended as
follows:
PART 2550—RULES AND
REGULATIONS FOR FIDUCIARY
RESPONSIBILITY
1. The authority citation for part 2550
is revised to read as follows:
jlentini on DSKJ8SOYB1PROD with RULES
■
Authority: 29 U.S.C. 1135; and Secretary
of Labor’s Order No. 6–2009, 74 FR 21524
(May 7, 2009). Secs. 2550.401b–1,
2550.408b–1, 2550.408b–19, 2550.408g–1,
and 2550.408g–2 also issued under sec. 102,
Reorganization Plan No. 4 of 1978, 5 U.S.C.
App. Sec. 2550.401c–1 also issued under 29
U.S.C. 1101. Sections 2550.404c–1 and
2550.404c–5 also issued under 29 U.S.C.
2 These comments are available on the
Department’s Web site at: https://www.dol.gov/ebsa/
regs/cmt-investmentadvicefinalrule.html.
VerDate Nov<24>2008
15:56 Nov 16, 2009
Jkt 220001
1104. Sec. 2550.407c–3 also issued under 29
U.S.C. 1107. Sec. 2550.404a–2 also issued
under 26 U.S.C. 401 note (sec. 657(c)(2), Pub.
L. 107–16, 115 Stat. 38, 136 (2001)). Sec.
2550.408b–1 also issued under 29 U.S.C.
1108(b)(1). Sec. 2550.408b–19 also issued
under sec. 611(g)(3), Public Law 109–280,
120 Stat. 780, 975 (2006).
§ 2550.408g–1
[Amended]
2. Section 2550.408g–1 is amended by
removing the date ‘‘November 18, 2009’’
and adding in its place ‘‘May 17, 2010’’
in paragraph (g).
■
Signed at Washington, DC, this 10th day of
November 2009.
Phyllis C. Borzi,
Assistant Secretary, Employee Benefits
Security Administration, Department of
Labor.
[FR Doc. E9–27532 Filed 11–16–09; 8:45 am]
BILLING CODE 4510–29–P
PENSION BENEFIT GUARANTY
CORPORATION
29 CFR Parts 4001 and 4022
RIN 1212–AB19
USERRA Benefits Under Title IV of
ERISA
AGENCY: Pension Benefit Guaranty
Corporation.
ACTION: Final rule.
SUMMARY: The Uniformed Services
Employment and Reemployment Rights
Act of 1994 (‘‘USERRA’’) provides that
an individual who leaves his or her job
to serve in the uniformed services is
generally entitled to reemployment by
his or her previous employer and, upon
reemployment, to receive credit for
benefits, including employee pension
plan benefits, that would have accrued
but for the employee’s absence due to
the military service. This final rule
amends PBGC’s regulation on Benefits
Payable in Terminated Single-Employer
Plans (29 CFR part 4022) to address a
narrow but important issue regarding
PBGC’s guarantee of benefits for
participants who are serving in the
uniformed services at the time that their
pension plan terminates. Under PBGC’s
existing regulations, a benefit is
guaranteed only if the participant
satisfies the conditions for entitlement
to the benefit on or before the plan’s
termination date. PBGC is providing an
exception to this rule in the unique
circumstances of persons serving in the
uniformed services as of the plan’s
termination date, consistent with
USERRA’s statutory mandate to treat
such persons, upon reemployment, as if
they had never left the employ of their
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59093
former employer. This final rule
provides that so long as a service
member is reemployed within the time
limits set by USERRA, even if the
reemployment occurs after the plan’s
termination date, PBGC will treat the
participant as having satisfied the
reemployment condition as of the
termination date. This will ensure that
the pension benefits of reemployed
service members, like those of other
employees, would generally be
guaranteed for periods up to the plan’s
termination date.
DATES: Effective December 17, 2009.
(See Applicability in SUPPLEMENTARY
INFORMATION.)
FOR FURTHER INFORMATION CONTACT: John
H. Hanley, Director, or Constance
Markakis, Attorney, Legislative and
Regulatory Department, Pension Benefit
Guaranty Corporation, Suite 12300,
1200 K Street, NW., Washington, DC
20005–4026, 202–326–4024. (TTY and
TTD users may call the Federal relay
service toll-free at 1–800–877–8339 and
ask to be connected to 202–326–4024.)
SUPPLEMENTARY INFORMATION:
Background
Pension Benefit Guaranty Corporation
(‘‘PBGC’’) administers the singleemployer pension plan termination
insurance program under Title IV of the
Employee Retirement Income Security
Act of 1974 (‘‘ERISA’’). When a covered
plan terminates in either a distress
termination under section 4041(c) of
ERISA, or an involuntary termination
(one initiated by PBGC) under section
4042 of ERISA, PBGC typically becomes
statutory trustee of the plan with
responsibility for paying benefits in
accordance with the provisions of Title
IV.
The amount of benefits paid by PBGC
under a terminated, trusteed plan is
generally determined as of the plan’s
termination date.1 Under section
4022(a) of ERISA, PBGC guarantees the
payment of nonforfeitable benefits
1 Section 404 of the Pension Protection Act of
2006 (‘‘PPA 2006’’), Public Law 109–280, added
sections 4022(g) and 4044(e) of ERISA, which
provide that, when an underfunded plan terminates
during the bankruptcy of the plan sponsor, the date
the sponsor’s bankruptcy petition was filed is
treated as the termination date of the plan for
purposes of determining the amount of benefits
PBGC guarantees and the amount of benefits in
priority category 3 in the section 4044 asset
allocation. These changes apply to plan
terminations that occur during the bankruptcy of
the plan sponsor if the bankruptcy filing date is on
or after September 16, 2006. See PBGC proposed
rule on Bankruptcy Filing Date Treated as Plan
Termination Date for Certain Purposes, 73 FR 37390
(Jul. 1, 2008). For convenience, this preamble
generally will refer to the plan’s termination date,
although in many cases this reference will instead
apply to the bankruptcy filing date.
E:\FR\FM\17NOR1.SGM
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]]>Agencies
[Federal Register Volume 74, Number 220 (Tuesday, November 17, 2009)]
[Rules and Regulations]
[Pages 59092-59093]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-27532]
=======================================================================
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DEPARTMENT OF LABOR
Employee Benefits Security Administration
29 CFR 2550
RIN 1210-AB13
Investment Advice--Participants and Beneficiaries
AGENCY: Employee Benefits Security Administration, Labor.
ACTION: Final rule; delay of effective and applicability date.
-----------------------------------------------------------------------
SUMMARY: This document delays the effective and applicability dates of
final rules under the Employee Retirement Income Security Act, and
parallel provisions of the Internal Revenue Code of 1986, relating to
the provision of investment advice to participants and beneficiaries in
individual account plans, such as 401(k) plans, and beneficiaries of
individual retirement accounts (and certain similar plans). These rules
were published in the Federal Register on January 21, 2009. The
effective and applicability dates of the final rules were deferred
until November 18, 2009, in order to permit a review of policy and
legal issues raised with respect to the rules. This document further
delays the effective and applicability dates of these final rules from
November 18, 2009, until May 17, 2010, to allow additional time for the
Department to complete its analysis of questions of law and policy
concerning the rules.
DATES: The effective and applicability date of the rule amending 29 CFR
Part 2550, published January 21, 2009, at 74 FR 3822, delayed March 20,
2009, at 74 FR 11847, and May 22, 2009, at 74 FR 23951, is further
delayed until May 17, 2010.
FOR FURTHER INFORMATION CONTACT: Fred Wong, Office of Regulations and
Interpretations, Employee Benefits Security Administration (EBSA),
(202) 693-8500. This is not a toll-free number.
SUPPLEMENTARY INFORMATION:
On January 21, 2009, the Department of Labor published final rules
on the provision of investment advice to participants and beneficiaries
of participant-directed individual account plans and to beneficiaries
of individual retirement accounts and certain similar plans (IRAs) (74
FR 3822). The rules implement a statutory prohibited transaction
exemption under ERISA Sec. 408(b)(14) and Sec. 408(g), and under
section 4975 of the Internal Revenue Code of 1986 (Code),\1\ and also
contain an administrative class exemption granting additional relief.
As published, these rules were to be effective on March 23, 2009.
Paragraph (g) of Sec. 2550.408g-1 provided that the rule would apply to
covered transactions occurring on or after March 23, 2009.
---------------------------------------------------------------------------
\1\ These provisions were added to ERISA and the Code by the
Pension Protection Act of 2006 (PPA), Public Law 109-280, 120 Stat.
780 (Aug. 17, 2006).
---------------------------------------------------------------------------
By memorandum dated January 20, 2009, Rahm Emanuel, Assistant to
the President and Chief of Staff, directed Agency Heads to consider
extending for 60 days the effective date of regulations that have been
published in the Federal Register but not yet taken effect. The
memorandum further advised that, where such regulations are extended,
agencies should allow 30 days for interested persons to comment on
issues of law and policy raised by the rules. In accordance with that
memorandum, and taking into account the considerations listed in the
Memorandum of January 21, 2009, from Peter R. Orszag, Director of the
Office of Management and Budget, the Department published in the
Federal Register on February 4, 2009, a document seeking comment on a
proposed 60-day extension of the effective dates for these rules until
May 22, 2009, and a proposed conforming amendment to the applicability
date of Sec. 2550.408g-1 (74 FR 6007). The document also requested
comment on issues of law and policy raised by the final rules. The
Department indicated that upon completion of its review, it might
decide to allow the rules to take effect, issue a further extension,
withdraw the rules, or propose amendments, and solicited comment on
each of these possible outcomes. In response to this invitation, the
Department received 28 comment
[[Page 59093]]
letters.\2\ A number of these comments expressed the view that the
final rules raise significant issues of law and policy. Among these,
some expressed disagreement with the final rules' interpretation of the
statutory exemption, and further questioned the adequacy of the class
exemption's conditions in mitigating against the potential for
investment adviser self-dealing.
---------------------------------------------------------------------------
\2\ These comments are available on the Department's Web site
at: https://www.dol.gov/ebsa/regs/cmt-investmentadvicefinalrule.html.
---------------------------------------------------------------------------
On March 20, 2009, the Department adopted the 60-day extension of
the final rule's effective and applicability date for agency review of
questions of law and policy raised by commenters (74 FR 11847). On May
22, 2009, in order to afford the Department additional time to consider
the issues raised by commenters, the Department adopted a further delay
of these dates until November 18, 2009 (74 FR 23951). The Department
believes that the complexity and significance of the issues involved
justify delaying the effective and applicability dates of the final
rule for an additional 180 days. This additional time will allow the
Department to complete its analysis of the issues of law and policy and
determine the appropriate steps to be taken. Accordingly, the
Department is adopting herein a 180 day delay of the effective and
applicability date of the final rule published on January 21, 2009.
With the adoption of this delay, the effective and applicability date
of the final rule will be May 17, 2010.
List of Subjects in 29 CFR Part 2550
Employee benefit plans, Exemptions, Fiduciaries, Investments,
Pensions, Prohibited transactions, Reporting and recordkeeping
requirements, and Securities.
0
For the reasons set forth above, the publication on January 21, 2009
(74 FR 3822), of the final rule amending 29 CFR Part 2550, is further
amended as follows:
PART 2550--RULES AND REGULATIONS FOR FIDUCIARY RESPONSIBILITY
0
1. The authority citation for part 2550 is revised to read as follows:
Authority: 29 U.S.C. 1135; and Secretary of Labor's Order No.
6-2009, 74 FR 21524 (May 7, 2009). Secs. 2550.401b-1, 2550.408b-1,
2550.408b-19, 2550.408g-1, and 2550.408g-2 also issued under sec.
102, Reorganization Plan No. 4 of 1978, 5 U.S.C. App. Sec.
2550.401c-1 also issued under 29 U.S.C. 1101. Sections 2550.404c-1
and 2550.404c-5 also issued under 29 U.S.C. 1104. Sec. 2550.407c-3
also issued under 29 U.S.C. 1107. Sec. 2550.404a-2 also issued under
26 U.S.C. 401 note (sec. 657(c)(2), Pub. L. 107-16, 115 Stat. 38,
136 (2001)). Sec. 2550.408b-1 also issued under 29 U.S.C.
1108(b)(1). Sec. 2550.408b-19 also issued under sec. 611(g)(3),
Public Law 109-280, 120 Stat. 780, 975 (2006).
Sec. 2550.408g-1 [Amended]
0
2. Section 2550.408g-1 is amended by removing the date ``November 18,
2009'' and adding in its place ``May 17, 2010'' in paragraph (g).
Signed at Washington, DC, this 10th day of November 2009.
Phyllis C. Borzi,
Assistant Secretary, Employee Benefits Security Administration,
Department of Labor.
[FR Doc. E9-27532 Filed 11-16-09; 8:45 am]
BILLING CODE 4510-29-P
