[Federal Register Volume 65, Number 57 (Thursday, March 23, 2000)]
[Notices]
[Page 15653]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-7246]


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DEPARTMENT OF LABOR

Pension and Welfare Benefits Administration


Proposed Extension of Information Collection; Comment Request; 
Prohibited Transaction Exemption 97-41

ACTION: Notice.

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SUMMARY: The Department of Labor (Department), 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.
    Currently, the Pension and Welfare Benefits Administration is 
soliciting comments concerning the proposed extension of the 
information collection provisions of Prohibited Transaction Class 
Exemption 97-41. A copy of the Information Collection Request (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 May 22, 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, DC 20210. Telephone: 
(202) 219-4782; Fax: (202) 219-4745. These are not toll-free numbers.

SUPPLEMENTARY INFORMATION:

I. Background

    Prohibited Transaction Class Exemption 97-41 provides an exemption 
from the prohibited transaction provisions of the Employment Retirement 
Income Security Act of 1974 (ERISA) and from certain taxes imposed by 
the Internal Revenue Code of 1986 (Code). The exemption permits an 
employee benefit plan to purchase shares of one or more open-end 
management investment companies (Mutual Fund) registered under the 
Investment Advisers Act of 1940, and which also serves as a fiduciary 
of the plan, in exchange for plan assets transferred in-kind to the 
Mutual Fund from a collective investment fund (CIF) maintained by the 
bank or plan adviser, where the bank or plan adviser is both the 
investment adviser to the Mutual Fund and a fiduciary of the plan. The 
transfer and purchase must be in connection with a complete withdrawal 
of a plan's assets from the CIF. The exemption affects participants and 
beneficiaries of the plans that are involved in such transactions as 
well as the bank or plan adviser and the registered investment company.
    In order to ensure that the exemption is not abused and that the 
rights of participants and beneficiaries are protected, the Department 
requires the bank to give the independent fiduciary notice of the in-
kind transfer and full written disclosure of information concerning the 
registered investment company. Further , the bank or plan adviser must 
provide the independent fiduciary with certain ongoing disclosures.

II. Desired Focus of Comments

    The Department is particularly interest in comment that:
     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 Action

    This existing information collection should be continued because 
without this exemption, plans would be unable to engage in transactions 
with banks and advisers of registered investment companies who maintain 
CIFs. For the Department to grant an exemption, however, it must ensure 
the participants and beneficiaries are protected. It, therefore, 
included certain conditions and disclosures to ensure that the 
independent fiduciary will have the information necessary to 
effectively monitor the registered investment company investments made 
by the plan.
    Type of Review: Extension of a currently approved collection of 
information.
    Agency: Pension and Welfare Benefits Administration, Department of 
Labor.
    Titles: Prohibited Transaction Class Exemption 97-41.
    OMB Number: 1210-0104.
    Affected Public: Individuals or households; Business or other for-
profit; Not-for-profit institutions.
    Estimated Total Burden Hours: 1,767.
    Respondents: 75.
    Frequency of Response: On occasion.
    Responses: 75.
    Total Burden Cost (Operating and Maintenance): $119,250.
    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: March 20, 2000.
Gerald B. Lindrew,
Deputy Director, Office of Policy and Research, Pension and Welfare 
Benefits Administration.
[FR Doc. 00-7246 Filed 3-22-00; 8:45 am]
BILLING CODE 4510-29-M