Proposed Extension of Information Collection Request Submitted
for Public Comment and Recommendations Prohibited Transaction Class
Exemption 81-8
[10/06/2004]
Volume 69, Number 193, Page 59963-59964
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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.
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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 December 6,
2004.
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-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 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 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
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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 November 30, 2004. 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.
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.
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.
Dated: September 30, 2004.
Gerald B. Lindrew,
Deputy Director, Employee Benefits Security Administration, Office of
Policy and Research.
[FR Doc. 04-22432 Filed 10-5-04; 8:45 am]
BILLING CODE 4510-29-P
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