[Federal Register Volume 61, Number 232 (Monday, December 2, 1996)]
[Notices]
[Pages 63870-63871]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-30605]


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DEPARTMENT OF LABOR

Pension and Welfare Benefits Administration


Proposed Information Collection Request Submitted for Public 
Comment and Recommendations; Prohibited Transaction Class Exemption 91-
38

ACTION: Notice.

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SUMMARY: The Department of Labor, as part of its continuing effort to 
reduce paperwork and respondent burden, provides the general public and 
Federal agencies with an opportunity to comment on proposed and/or 
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 Pension and Welfare Benefits Administration is 
soliciting comments concerning the proposed extension of a currently 
approved collection of information, Prohibited Transaction Class 
Exemption 91-38. A copy of the proposed information collection request 
can be obtained by contacting the employee listed below in the contact 
section of this notice.

DATES: Written comments must be submitted on or before January 31, 
1997. The Department of Labor is particularly interested in comments 
which:
    * 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 clarify 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.

ADDRESSEE: Gerald B. Lindrew, Department of Labor, Pension and Welfare 
Benefits Administration, 200 Constitution Avenue, NW., Washington, DC 
20210, (202) 219-7933, FAX (202) 219-4745.

SUPPLEMENTARY INFORMATION:

I. Background

    Prohibited Transaction Class Exemption 91-38 provides an exemption 
from the prohibited transaction provisions of ERISA for certain 
transactions between a bank collective investment fund and persons who 
are parties in interest with respect to a plan as long as the plan's 
participation in the collective investment fund does not exceed a 
specified percentage of the total assets in the collective investment 
fund. In order to ensure that the exemption is not abused, that the 
rights of participants and beneficiaries are protected, and that 
compliance with the exemption's conditions are taking place, DOL has 
required that records regarding the exempted transactions be maintained 
for six years.

II. Current Actions

    This existing collection of information should be continued because 
without the exemption, individuals or entities which are parties in 
interest of a plan that invests in a bank collective investment fund 
would not be able to engage in transactions with the collective 
investment fund and would, thus, create a potential hardship to those 
affected. For DOL to grant an exemption, however, it needs to assure 
that the plan's participants and beneficiaries are protected. It, 
therefore, included certain conditions in the exemption, and required 
that records be kept for six years from the date of the transaction so 
that it can be determined whether these conditions have been followed. 
Without such records, DOL and other interested parties, such as 
participants, would be unable to effectively enforce the terms of the 
exemption and ensure user compliance.
    Type of Review: Extension
    Agency: Pension and Welfare Benefits Administration
    Title: Prohibited Transaction Class Exemption 91-38
    OMB Number: 1210-0082
    Affected Public: Business or other for-profit, Not-for-profit 
institutions, Individuals
    Frequency: On occasion
    Estimated Total Burden Hours: 1
    Respondents, proposed frequency of response, and annual hour 
burden: Under ERISA regulation section 2520.103-9, banks sponsoring 
collective investment funds are required to

[[Page 63871]]

maintain certain records each year for preparing the annual report or 
to be supplied to the plan sponsor to prepare the annual report. In 
addition, banks are highly regulated by state and federal law, and 
their books and records are subject to periodic examination by state 
and federal agencies. Because of the ERISA annual reporting 
requirements and the heavy state and federal regulation, the Department 
has assumed that the records required by this class exemption are the 
same records kept in the normal course of business by banks. Therefore, 
the burden of this exemption is minimal, and the Department has 
assigned one hour to it.
    Total Burden Cost (capital/start-up): $0.00
    Total Burden Cost (operating/maintenance): $0.00
    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: November 26, 1996.
Gerald B. Lindrew,
Director, Pension and Welfare Benefits Administration, Office of Policy 
and Legislative Analysis.
[FR Doc. 96-30605 Filed 11-29-96; 8:45 am]
BILLING CODE 4510-29-M