[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