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[Federal Register: January 26, 2000 (Volume 65, Number 17)]
[Notices]               
[Page 4262-4263]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26ja00-89]                         

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DEPARTMENT OF LABOR

Pension and Welfare Benefits Administration

 
Proposed Extension of Information Collection; Comment Request; 
Prohibited Transaction Exemption   90-1

ACTION:  Notice.

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SUMMARY:  The Department of Labor (the Department), 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 extension of the information 
collection requests (ICR) incorporated in Prohibited Transaction Class 
Exemption 90-1, involving insurance company pooled separate accounts. 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 March 27, 2000.

ADDRESSES:  Gerald B. Lindrew, Office of Policy and Research, U.S. 
Department of Labor, Pension and Welfare Benefits Administration, 200 
Constitution Avenue, NW, Room N-5647, Washington, D.C. 20210. 
Telephone: (202) 219-4782; Fax: (202) 219-4745. These are not toll-free 
numbers.

SUPPLEMENTARY INFORMATION:

I. Background

    Prohibited Transaction Class Exemption 90-1 provides an exemption 
from certain provisions of the Employee Retirement Income Security Act 
of 1974 (ERISA) for certain transactions involving insurance company 
pooled separate accounts in which employee benefit plans participate 
and which are otherwise prohibited by ERISA. Specifically, the 
exemption allows persons who are parties in interest of a plan that 
invests in a pooled separate account to engage in transactions with the 
separate account if the plan's participation in the separate account 
does not exceed specified limits. In order to ensure that the exemption 
is not abused, that the rights of participants and beneficiaries are 
protected, and that certain conditions are met, the Department requires 
that records regarding the exempted transaction be maintained for six 
years.

II. Desired Focus of Comments

    The Department is particularly interested in comments which
    <bullet> 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;
    <bullet> 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;
    <bullet> Enhance the quality, utility, and clarity of the 
information to be collected; and
    <bullet> 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 Action

    This exemption provides individuals or entities which are parties 
in interest to a plan that invests in an insurance company pooled 
separate account with the ability to engage in transactions with the 
separate account and to avoid potential hardships and possible 
fiduciary liability under ERISA. For the Department to grant an 
exemption, however, plan participants and beneficiaries must be 
protected. The Department therefore included certain exemption 
conditions, one of which requires that records of a transaction

[[Page 4263]]

between the party in interest to a plan and the insurance company 
pooled separate account be kept by the insurance company for six years 
from the date of the transaction. The majority of this recordkeeping is 
considered to be usual business practice in the insurance industry. 
Without this ICR, the Department would be unable to effectively enforce 
the terms of the exemption, insure user compliance, and protect the 
interests of participants and beneficiaries.
    Type of Review: Extension of currently approved collections of 
information.
    Agency: Pension and Welfare Benefits Administration.
    Title: Prohibited Transaction Exemption 90-1--Pooled Separate 
Accounts.
    OMB Number: 1210-0083.
    Recordkeeping: Six years.
    Affected Public: Individuals or households; Business or other for-
profit; Not-for-profit institutions.
    Total Respondents: 128.
    Average Time per Response: 5 minutes.
    Estimated Total Burden Hours: 11 hours.
    This notice requests comments on the extension of the ICR included 
in Prohibited Transaction Class Exemption 90-1. The Department is not 
proposing or implementing changes to the existing ICR at this time. 
Comments received in response to this notice will be summarized and/or 
incorporated in the submission to OMB for continued clearance of the 
ICR; they will also become a matter of public record.

    Dated: January 20, 2000.
Gerald B. Lindrew,
Deputy Director, Office of Policy and Research, Pension and Welfare 
Benefits Administration.
[FR Doc. 00-1782 Filed 1-25-00; 8:45 am]
BILLING CODE 4510-29-M

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