[Federal Register Volume 61, Number 232 (Monday, December 2, 1996)]
[Notices]
[Page 63872]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-30607]



[[Page 63872]]

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DEPARTMENT OF LABOR

Proposed Information Collection Request Submitted for Public 
Comment and Recommendations; Prohibited Transaction Class Exemption 77-
10

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 77-10. 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, DC 
20210, (202) 219-7933, FAX (202) 219-4745.

SUPPLEMENTARY INFORMATION:

I. Background

    Prohibited Transaction Class Exemption 77-10 enables a multiple 
employer plan to share office space and administrative services and 
goods, to lease office space or provide administrative services or to 
sell or lease goods to a participating employer, or participating 
employer association, or to another multiple employer plan, provided 
certain conditions are met. In the absence of this exemption, certain 
aspects of these transactions might be prohibited by section 406(b)(2) 
of the Employee Retirement Income Security Act of 1974 (the Act).

II. Current Actions

    This existing collection of information should be continued because 
without the exemption, participating unions or employers would not be 
able to share or lease office space or to share or obtain 
administrative services or goods from a plan in cases where violations 
of section 406(b)(2) of ERISA would otherwise occur. Plans which would 
be denied the opportunity to utilize such services might incur 
additional administrative costs as well as possibly lose a source of 
income. The recordkeeping requirements incorporated within the class 
exemption are intended to protect the interests of plan participants 
and beneficiaries. The exemption has one basic information collection 
condition. A plan which shares office space, administrative services or 
goods or which provides administrative services or goods is required to 
maintain during the time of the transactions and for six years from the 
time of termination such records as are necessary to enable the Labor 
Department, plan participants and beneficiaries, participating 
employers and others to determine whether the conditions of the 
exemption have been met. The records should indicate the potential 
conflict of interest present in a transaction, such as where a plan 
trustee involved in the decision is also an officer of a contributing 
employer who would benefit from the provision of certain services.
    Type of Review: Extension
    Agency: Pension and Welfare Benefits Administration.
    Title: Prohibited Transaction Class Exemption 77-10.
    OMB Number: 1210-0081.
    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: The recordkeeping requirements of this exemption are similar to 
those included in Part C of Prohibited Transaction Class Exemption 76-1 
(PTE 76-1). The Department assumes that anyone utilizing this exemption 
would also need to use PTE 76-1. The Department estimates that the 
recordkeeping burden of this class exemption, in effect, has been 
incorporated in the burden for PTE 76-1. Therefore, the Department 
estimates the burden hours for this exemption to be one hour.
    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. 96-30607 Filed 11-29-96; 8:45 am]
BILLING CODE 4510-29-M