[Federal Register Volume 66, Number 32 (Thursday, February 15, 2001)]
[Notices]
[Pages 10512-10513]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-3832]


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DEPARTMENT OF LABOR

Pension and Welfare Benefits Administration


Proposed Extension of Information Collection; Comment Request; 
Prohibited Transaction Class Exemption 85-68

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 85-68. 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 April 16, 2001.

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

    Pursuant to section 408 of ERISA, the Department has authority to 
grant an exemption from the prohibitions of sections 406 and 407(a) if 
it can determine that the exemption is administratively feasible, in 
the interest of participants and beneficiaries, and protective of the 
rights of participants and beneficiaries of the plan. Prohibited 
Transaction Class Exemption 85-68 describes the conditions under which 
a plan is permitted to acquire customer notes accepted by an employer 
of employees covered by the plan in the ordinary course of the 
employer's primary business activity. The exemption covers sales as 
well as contributions of customer notes by an employer to its plan. 
Specifically, the exemption requires that the employer provide a 
written guarantee to repurchase a note which becomes more than 60 days 
delinquent, that such notes be secured by a perfected security interest 
in the property financed by the note, and that the collateral be 
insured. This ICR requires that records pertaining to the transaction 
be maintained for a period of six years for the purpose of ensuring 
that the transactions are protective of the rights of participants and 
beneficiaries.

I. Desired Focus of Comments

    The Department is particularly interested in comments 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 on those who are to respond, including through the use of 
appropriate automated,

[[Page 10513]]

electronic, mechanical, or other technological collection techniques or 
other forms of information technology, e.g., permitting electronic 
submission of responses.

III. Current Actions

    This notice requests comments on the extension of the ICR included 
in PTE-85-68. The ICR included in this exemption is intended to ensure 
that the conditions of ERISA section 408 have been satisfied with 
respect to transactions involving customer notes. The Department is not 
proposing or implementing changes to the existing ICR at this time.
    Type of Review: Extension of a currently approved collection of 
information
    Agency: Department of Labor, Pension and Welfare Benefits 
Administration.
    Title: Prohibited Transaction Exemption 85-68.
    OMB Number: 1210-0094.
    Affected Public: Individuals or households; Business or other for-
profit; Not-for-profit institutions.
    Respondents: 120.
    Frequency of Response: On occasion.
    Responses: 960.
    Estimated Total Burden Hours: 960.
    Total Burden Cost (Operating and Maintenance): $0.00.
    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: February 6, 2001.
Gerald B. Lindrew,
Deputy Director, Office of Policy and Research, Pension and Welfare 
Benefits Administration.
[FR Doc. 01-3832 Filed 2-14-01; 8:45 am]
BILLING CODE 4510-29-P