[Federal Register Volume 61, Number 232 (Monday, December 2, 1996)]
[Notices]
[Page 63871]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-30606]
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DEPARTMENT OF LABOR
Proposed Information Collection Request Submitted for Public
Comment and Recommendations; Prohibited Transaction Class Exemption 90-
1
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 90-1. 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.
ADDRESSES: Gerald B. Lindrew, Department of Labor, Pension and Welfare
Benefits Administration, 200 Constitution Avenue, NW, Washington, D.C.
20210, (202) 219-7933, FAX (202) 219-4745.
FOR FURTHER INFORMATION CONTACT:
I. Background
Prohibited Transaction Class Exemption 90-1 provides an exemption
from certain of ERISA's prohibited transaction provisions for
transactions involving insurance company pooled separate accounts in
which employee benefit plans participate. The general 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 compliance with the exemptions 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 an insurance company pooled separate
account would not be able to engage in transactions with the separate
account creating a potential hardship to those affected. For the
Department 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 the Department and other interested parties, such as
participants, would be unable to effectively enforce the terms of the
exemption and insure user compliance.
Type of Review: Extension
Agency: Pension and Welfare Benefits Administration
Title: Prohibited Transaction Class Exemption 90-1
OMB Number: 1210-0083
Affected Public: Business or other for-profit, Not-for-profit
institutions, Individuals
Frequency: On occasion
Estimated Total Burden House: 1
Respondents, proposed frequency of response, and annual hour
burden: Under ERISA regulation section 2520.103-9, insurance companies
administering pooled separate accounts are required to 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, insurance
companies are highly regulated by State law, and their books and
records are subject to periodic examination by State agencies. Because
of the ERISA annual reporting requirements and the heavy State
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 insurance companies. 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. Lindres,
Director, Pension and Welfare Benefits Administration, Office of Policy
and Legislative Analysis.
[FR Doc. 96-30606 Filed 11-29-96; 8:45 am]
BILLING CODE 4510-29-M