EBSA (Formerly PWBA) Federal Register Notice

Extension of Information Collection; Comment Request; Prohibited Transaction Exemption 91-55 [02/14/2001]

Volume 66, Number 31, Page 10322-10323

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF LABOR

Pension and Welfare Benefits Administration

 
Extension of Information Collection; Comment Request; Prohibited 
Transaction Exemption 91-55

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 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 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 Pension and Welfare Benefits Administration is 
soliciting comments concerning the information collection request (ICR) 
incorporated in Prohibited Transaction Exemption 91-55, Transactions 
Between Individual Retirement Accounts and Authorized Purchasers of 
American Eagle Coins. A copy of the 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 below on or before April 16, 2001.

ADDRESSES: Gerald B. Lindrew, Office of Policy and Research, U.S. 
Department of Labor, Pension and Welfare Benefits Administration, 200 
Constitution Avenue, NW, Washington, D.C. 20210. Telephone: (202) 219-
4782 (this is not a toll-free number); FAX: (202) 219-4745. These are 
not toll-free numbers.

SUPPLEMENTARY INFORMATION:

I. Background

    Prohibited Transaction Exemption 91-55 permits purchases and sales 
by certain ``individual retirement accounts,'' as defined in Internal 
Revenue Code section 408 (IRAs) of American Eagle bullion coins 
(``Coins'') in principal transactions from or to broker-dealers in 
Coins that are ``authorized purchasers'' of Coins in bulk quantities 
from the United States Mint and which are also ``disqualified 
persons,'' within the meaning of Code section 4975(e)(2), with respect 
to IRAs. The exemption also describes the circumstances under which an 
interest-free extension of credit in connection with such sales and 
purchases is permitted. In the absence of an exemption, such purchases 
and sales and extensions of credit would be impermissible under the 
Employee Retirement Income Security Act of 1974 (ERISA).
    The information collection request for this exemption includes 
three requirements. First, certain information related to covered 
transactions in Coins must be disclosed by the authorized purchaser to 
persons who direct the transaction for the IRA. Currently, it is 
standard industry practice that most of this information is provided to 
persons directing investments in an IRA when transactions in Coins 
occur. The exemption also requires that the disqualified person 
maintain for a period of at least six years such records as are 
necessary to allow accredited persons, as defined in the exemption, to 
determine whether the conditions of the transaction have been met. 
Finally, an authorized purchaser must provide a confirmation statement 
with respect to each covered transaction to the person who directs the 
transaction for the IRA.
    The recordkeeping requirement facilitates the Department's ability 
to make findings under section 408 of ERISA and section 4975(c) of the 
Code. The confirmation and disclosure requirements protect a 
participant or beneficiary investing in IRAs transacting in Coins with 
authorized purchasers by providing the investor or the person directing 
his or her investments with timely information about the market in 
Coins and about the individual's account in particular.

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

[[Page 10323]]

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

    This Notice requests comments on the extension of the ICR included 
in PTE 91-55. The Department is not proposing or implementing changes 
to the existing ICR at this time.
    Type of Review: Extension of a currently approved collection of 
information.
    Agency: Pension and Welfare Benefits Administration, Department of 
Labor.
    Title: Prohibited Transaction Exemption 91-55.
    OMB Number: 1210-0079.
    Affected Public: Business or other for-profit; Not-for-profit 
institutions; Individuals.
    Total Respondents: 3.
    Frequency: On occasion.
    Total Responses: 55,000.
    Estimated Total Burden Hours: 2,400 hours.
    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: February 6, 2001.
Gerald B. Lindrew,
Pension and Welfare Benefits Administration, Deputy Director, Office of 
Policy and Research.
[FR Doc. 01-3729 Filed 2-13-01; 8:45 am]
BILLING CODE 4510-29-P