[Federal Register: March 20, 2009 (Volume 74, Number 53)]
[Rules and Regulations]
[Page 11847-11848]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20mr09-5]
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DEPARTMENT OF LABOR
Employee Benefits Security Administration
29 CFR Part 2550
RIN 1210-AB13
Investment Advice--Participants and Beneficiaries
AGENCY: Employee Benefits Security Administration, Labor.
ACTION: Final rule; delay of effective date and applicability date.
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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. This
document postpones the effective and applicability dates of these final
rules from March 23, 2009 until May 22, 2009, to allow additional time
for the Department to evaluate 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, is delayed until
May 22, 2009.
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:
A. Background
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 (74 FR 3822). The rules contain
regulations implementing a statutory prohibited transaction exemption
under ERISA Sec. 408(b)(14) and Sec. 408(g) and 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 to the effective dates for these rules until
May 22, 2009, and a proposed conforming amendment to the applicability
date of
[[Page 11848]]
Sec. 2550.408g-1. The document also requested comment on issues of law
and policy raised by the final rules. The comment period on the
proposed extension ended on February 18, 2009. The comment period on
issues of law and policy concerning the final rules ended on March 6,
2009.
For the reasons discussed below, the Department has decided to
postpone, for 60 days, the effective and applicability dates of the
final rules published on January 21, 2009, until May 22, 2009, for
agency review of questions of law and policy.
B. Comments Received and the Department's Decision
In response to its request, the Department received 26 comment
letters.\1\ A number of commenters expressed the view that the final
rules raise significant issues of law and policy that should be further
reviewed by the Department. In particular, these comments raised
questions as to the scope of the final rules' administrative class
exemption, and expressed disagreement with the interpretation of the
statutory exemption's conditions contained within the final rules.
Other commenters, however, expressed the view that the conditions of
the final rules would be adequate to safeguard the interests of plan
participants and beneficiaries, and opposed a delay of the final rules'
effective and applicability dates, noting increased participant
interest in investment advice in response to the current economic
environment.
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\1\ These comments are available on the Department's Web site
at: http://www.dol.gov/ebsa/regs/cmt-investmentadvicefinalrule.html.
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After consideration of the comments, the Department has concluded
that the legal and policy issues raised by commenters are sufficiently
significant to justify delaying the March 23 effective and
applicability dates of the final rule in order to afford the Department
an opportunity to review those issues. Accordingly, the Department is
adopting herein the proposed 60 day delay of the effective and
applicability date of the final rule. With the adoption of this delay,
the effective and applicability dates of the final rule will be May 22,
2009.
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. 1-
2003, 68 FR 5374 (Feb. 3, 2003). Sec. 2550.401b-1 also issued under
sec. 102, Reorganization Plan No. 4 of 1978, 43 FR 47713 (Oct. 17,
1978), 3 CFR, 1978 Comp. 332, effective Dec. 31, 1978, 44 FR 1065
(Jan. 3, 1978), 3 CFR, 1978 Comp. 332. 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, Pub. L. 107-16, 115 Stat. 38). Sec. 2550.408b-1 also
issued under 29 U.S.C. 1108(b)(1) and sec. 102, Reorganization Plan
No. 4 of 1978, 3 CFR, 1978 Comp. p. 332, effective Dec. 31, 1978, 44
FR 1065 (Jan. 3, 1978), and 3 CFR, 1978 Comp. 332. Sec. 2550.408b-19
also issued under sec. 611, Public Law 109-280, 120 Stat. 780, 972,
and sec. 102, Reorganization Plan No. 4 of 1978, 3 CFR, 1978 Comp.
p. 332, effective Dec. 31, 1978, 44 FR 1065 (Jan. 3, 1978), and 3
CFR, 1978 Comp. 332. Sec. 2550.408g-1 also issued under sec. 102,
Reorganization Plan No. 4 of 1978, 3 CFR, 1978 Comp. p. 332,
effective Dec. 31, 1978, 44 FR 1065 (Jan. 3, 1978), and 3 CFR, 1978
Comp. 332. Sec. 2550.408g-2 also issued under 29 U.S.C. 1108(g) and
sec. 102, Reorganization Plan No. 4 of 1978, 3 CFR, 1978 Comp. p.
332, effective Dec. 31, 1978, 44 FR 1065 (Jan. 3, 1978), and 3 CFR,
1978 Comp. 332. Sec. 2550.412-1 also issued under 29 U.S.C. 1112.
Sec. 2550.408g-1 [Amended]
0
2. Section 2550.408g-1 is amended by removing the date ``March 23,
2009'' and adding in its place ``May 22, 2009'' in paragraph (g).
Signed at Washington, DC, this 17th day of March 2009.
Alan D. Lebowitz,
Deputy Assistant Secretary for Program Operations, Employee Benefits
Security Administration, Department of Labor.
[FR Doc. E9-6210 Filed 3-19-09; 8:45 am]
BILLING CODE 4510-29-P