[Federal Register Volume 65, Number 17 (Wednesday, January 26, 2000)]
[Notices]
[Pages 4264-4265]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-1784]


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DEPARTMENT OF LABOR

Pension and Welfare Benefits Administration


Proposed Revision of Information Collection; Comment Request; 
Prohibited Transaction Exemptions 76-1 and 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, conducts a preclearance 
consultation program to provide the general public and Federal agencies 
with an opportunity to comment on proposed and continuing collections 
of information in accordance with the Paperwork Reduction Act of 1995 
(PRA 95) (44 U.S.C. 3506(c)(2)(A)). This 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.
    The Pension and Welfare Benefits Administration is soliciting 
comments concerning revision of two currently approved information 
collection requests (ICRs), Prohibited Transaction Class Exemption 76-
1, OMB Number 1210-0058, and Prohibited Transaction Class Exemption 77-
10, OMB Number 1210-0081. The Department proposes to revise the ICR 
currently approved under OMB Number 1210-0058 by incorporating the 
information collection provisions of Prohibited Transaction Class 
Exemption 77-10 into OMB Number 1210-0058, and allowing OMB Number 
1210-0081 to expire on April 30, 2000. A copy of the ICR may be 
obtained by contacting the office listed in the addresses section of 
this notice.

DATES:  Written comments must be submitted to the office shown in the 
addresses section below on or before March 27, 2000.

ADDRESSES:  Gerald B. Lindrew, Office of Policy and Research, U.S. 
Department of Labor, Pension and Welfare Benefits Administration, 200 
Constitution Avenue, NW, Room N-5647, Washington, D.C. 20210. 
Telephone: (202) 219-4782; Fax: (202) 219-4745. These are not toll-free 
numbers.

SUPPLEMENTARY INFORMATION:

I. Background

    Prohibited Transaction Class Exemption 76-1 permits parties in 
interest, under specified conditions, to (A) make delinquent employer 
contributions; (B) receive loans; (C) and, obtain office space, 
administrative services and goods from plans. In the absence of this 
exemption, certain aspects of these transactions might be prohibited by 
section 406(a) and 407(a) of the Employee Retirement Income Security 
Act of 1974 (the Act).
    Under Part C of Prohibited Transaction Class Exemption 76-1, a 
multiple employer plan may provide administrative services or goods to 
a participating employer, a union, or another plan which is a party in 
interest. Under section 406(b)(2) of the Act, however, fiduciaries are 
prohibited from involving an employee benefit plan on behalf of a party 
(or representing a party) whose interests are adverse to the interests 
of a plan or to the interests of its participants or beneficiaries. 
Therefore, transactions between parties in interest involving 
administrative goods and services, exempt under the terms of Prohibited 
Transaction Class Exemption 76-1, might still be prohibited under 
section 406(b)(2) in the absence of a separate exemption. Prohibited 
Transaction Class Exemption 77-10, authorizes a multiple employer plan 
to provide the goods and services described in Part C if certain 
conditions are met and provides relief from the provisions of section 
406(b)(2).

II. Desired Focus of Comments

    The Department 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 clarity of 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 submission of responses.

III. Current Actions

    Because Prohibited Transaction Class Exemption 77-10 (OMB Number 
1210-0081) complements Prohibited Transaction Class Exemption 76-1 (OMB 
Number 1210-0058), the Department proposes to combine the information 
collection provisions of both under one OMB control number (OMB Number 
1210-0058). The Department believes the public will benefit by having 
the opportunity to comment on the information collection provisions at 
the same time because Prohibited Transaction Class Exemption 77-10 is 
not likely to be used without its counterpart Prohibited Transaction 
Class Exemptions 76-1, Part C, and because the paperwork burden for 
both exemptions is essentially a single burden. After the information 
collection provisions of Prohibited Transaction Class Exemption 77-10 
are incorporated in the revised ICR under 1210-0058, the Department 
intends to allow the control number for Prohibited Transaction Class 
Exemption 77-10 to expire.
    The existing collection of information under Prohibited Transaction 
Class Exemptions 76-1 and 77-10 should be continued because without the 
relief provided by these exemptions: contributing employers would not 
be able to make late or partial payments to plans, even in justifiable 
circumstances; contributing employers would be unable to obtain 
construction financing from plans and the plans would be denied this 
investment opportunity; and plans would not be able to receive income 
from leasing available office space or providing services to certain 
parties in interest.
    The recordkeeping requirements incorporated within Prohibited 
Transaction Class Exemption 76-1 are intended to protect the interest 
of plan participants and beneficiaries. Each part of the exemption 
differs somewhat in paperwork. Under Part A, the terms of an 
arrangement or agreement between a plan and a participating employer 
extending time for a contributing or accepting less than the amount 
owed must be set forth in writing. Also, a determination by a plan to 
consider an unpaid employer contributing as uncollectible must be set 
forth in writing. Under Part B, before a construction loan is made by a 
plan to a participating employer, the employer and the plan must 
receive a written commitment for permanent financing from a person 
other than the plan concerning full repayment of the loan upon 
completion of construction. In

[[Page 4265]]

addition, the plan must maintain for six years such records as are 
necessary to enable the Department, Internal Revenue Service (IRS), 
plan participants, beneficiaries, participating employers, and others 
to determine whether the conditions of the exemptions have been met. 
Part C permits plans to lease office space and provide administrative 
services or sell goods to a participating employer or union or to 
another plan. Under Part C, the plan must maintain for six years 
following the date of termination of the lease or of the provision of 
services such records as are necessary to enable persons from the 
Department, IRS, and other related parties to determine whether the 
conditions of the exemption have been met.
    Information collection under Prohibited Transaction Class Exemption 
77-10 requires that a multiple employer plan which shares office space, 
administrative services, or goods or which provides administrative 
services or goods (as under Part C of Prohibited Transaction Exemption 
76-1), maintain, during the time of the transactions and six years from 
the time of termination, such records as are necessary to enable the 
Department, IRS, and other related parties to determine whether the 
conditions of the exemption have been met. The recordkeeping 
requirements are intended to protect the interests of plan participants 
and beneficiaries and are essentially the same recordkeeping 
requirements as under Part C of Prohibited Transaction Class Exemption 
76-1.
    Type of Review: Revision of a currently approved collection of 
information.
    Agency: Pension and Welfare Benefits Administration.
    Titles: Prohibited Transaction Class Exemptions 76-1 and 77-10.
    OMB Number: 1210-0058.
    Affected Public: Individuals or households; Business or other for-
profit; Not-for-profit institutions.
    Respondents: 3,000.
    Frequency of Response: On occasion.
    Responses: 3,000.
    Average Time per Response: 15 minutes.
    Estimated Total Burden Hours: 750.
    Comments submitted in response to this notice will be summarized 
and/or included in the request for OMB approval of the information 
collection request; they will also become a matter of public record.

    Dated: January 20, 2000.
Gerald B. Lindrew,
Deputy Director, Office of Policy and Research, Pension and Welfare 
Benefits Administration.
[FR Doc. 00-1784 Filed 1-25-00; 8:45 am]
BILLING CODE 4510-29-M