Extension of Information Collection; Comment Request; Prohibited
Transaction Exemption 91-55 [Notices] [02/14/2001]
Extension of Information Collection; Comment Request; Prohibited
Transaction Exemption 91-55 [02/14/2001]
Volume 66, Number 31, Page 10322-10323
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DEPARTMENT OF LABOR
Pension and Welfare Benefits Administration
Extension of Information Collection; Comment Request; Prohibited
Transaction Exemption 91-55
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 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
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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
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