[Federal Register Volume 66, Number 120 (Thursday, June 21, 2001)]
[Notices]
[Pages 33274-33275]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-15638]


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DEPARTMENT OF LABOR

Pension and Welfare Benefits Administration

PENSION BENEFIT GUARANTY CORPORATION


Proposed Extension of Information Collection Request Submitted 
for Public Comment and Recommendations

ACTION: Notice.

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SUMMARY: The Department of Labor and the Pension Benefit Guaranty 
Corporation (the Agencies), as part of their continuing efforts to 
reduce paperwork and respondent burden, conduct a preclearance 
consultation program to provide the general public and other 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 program helps to 
ensure that requested data is 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.
    By this notice, the Agencies are soliciting comments concerning the 
proposed extension of approval of the Form 5500, Annual Return/Report 
of Employee Benefit Plan. The Internal Revenue Service (IRS) published 
its preclearance notice related to the Form 5500 and schedules on April 
13, 2001 (66 FR 19287). A copy of the proposed information collection 
request (ICR) can be obtained by contacting the office listed below in 
the addresses section of this notice. Although the 2001 Form 5500 is 
not yet available, it is not expected at this time to differ 
substantively or materially from the 2000 Form 5500. The Agencies are 
considering certain modifications to the existing Form 5500 to address 
processing issues arising from implementation of the ERISA Filing 
Acceptance System (EFAST) and incorporate statutory or regulatory 
changes that have occurred.
    Informational copies of the 2000 Form 5500 and schedules, as well 
as the 2001 Form 5500 and schedules when they are finalized, are 
available for downloading and viewing on the EFAST website: 
www.efast.dol.gov. Official hand print forms are also made available as 
part of the annual mailing of the Form 5500 package. The hand print 
forms, schedules and instructions will also be available 24 hours a 
day, 7 days a week by calling: 1-800-TAX-FORM (1-800-829-3676).

DATES: Written comments must be submitted to the office listed in the 
addresses section below on or before August 20, 2001.

ADDRESSES: Interested parties are invited to submit written comments 
regarding the collection of information. Send comments to Mr. 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). All comments will be 
shared between the Agencies.

SUPPLEMENTARY INFORMATION:

I. Background

    The purpose of this notice is to seek comments from the public 
prior to submission to OMB for continued approval of the Form 5500 in 
accordance with the provisions of PRA 95. The existing approval will 
expire on August 31, 2001. We are providing this detailed background 
information to summarize the numerous changes that have occurred for 
the Form 5500 and processing system since the OMB's most recent prior 
action to approve the ICR, and to provide context for the comments 
requested at this time.
    Under Titles I and IV of the Employee Retirement Income Security 
Act of 1974, as amended (ERISA), and the Internal Revenue Code of 1986, 
as amended (the Code), pension and other employee benefit plans are 
generally required to file annual returns/reports concerning, among 
other things, the financial condition and operations of the plan. These 
annual reporting requirements can be satisfied generally by filing the 
Form 5500 in accordance with its instructions and related regulations. 
The Form 5500 is the primary source of information concerning the 
operation, funding, assets and investments of pension and other 
employee benefit plans. In addition to being an important disclosure 
document for plan participants and beneficiaries, the Form 5500 is a 
compliance and research tool for the Agencies and the IRS, and a source 
of information for use by other federal agencies, Congress, and the 
private sector in assessing employee benefit, tax, and economic trends 
and policies.
    On September 3, 1997, the Agencies and IRS published a Notice of 
Proposed Revision of Annual Information Return/Reports (September 3 
Notice) in the Federal Register (62 FR 46556) as part of the effort to 
streamline and simplify the Form 5500, Annual Report/Return of Employee 
Benefit Plan. The Agencies and the IRS proposed the replacement of the 
Form 5500, Form 5500-C and Form 5500-R with one Form 5500 intended to 
streamline the report and the methods by which it is filed. Concurrent 
with the development of the new forms, the Agencies and the IRS 
initiated the development of a new computerized system to process the 
Form 5500 (EFAST). EFAST is designed to simplify and expedite the 
receipt and processing of the new Form 5500 by relying on computer 
scannable forms and electronic filing technologies. The development of 
the forms in conjunction with the EFAST system was intended to 
streamline and improve the

[[Page 33275]]

Form 5500 and lower the administrative burdens and costs incurred by 
the more than 1 million employee benefit plans that file the Form 5500 
each year.
    A public hearing on the proposed forms revisions was held on 
November 17, 1997, and written comments on the proposal were received 
until the public record was closed on December 3, 1997. After 
considering public comments received in connection with the September 3 
Notice and the public hearing, the Agencies and the IRS made various 
adjustments to the proposed forms and instructions where consistent 
with the purposes of the Form 5500 and the objectives of the 
streamlining project. A revised Form 5500 was submitted to the Office 
of Management and Budget (OMB) for approval under the Paperwork 
Reduction Act, and a Notice was published in the Federal Register on 
June 24, 1998 (63 FR 34493) that provided a 30-day opportunity to 
submit comments to OMB on the new Form 5500 submission.
    On August 26, 1998, OMB approved the data elements of the revised 
Form 5500 through August 31, 2001. OMB's approval was conditioned on 
the Agencies and IRS making certain minor technical adjustments that 
were completed in September of 1998,\1\ and their solicitation of 
additional public comments on the computer scannable formats of the 
Form 5500 being developed in connection with the EFAST project. 
Accordingly, when draft computer scannable formats were developed, the 
Agencies and the IRS published a Federal Register notice on June 28, 
1999 (64 FR 34686) soliciting public comments on the draft versions of 
the new form developed by two vendors who were competing for the 
contract to install the EFAST system. The Agencies subsequently 
selected the vendor to process the final scannable version of the new 
Form 5500. Although the reformatting of the form approved by OMB on 
August 26, 1998 to a computer scannable format affected the appearance 
and length of the new form, the actual number of data elements was not 
affected. The final hand print versions of the Form 5500 were published 
as part of the Agencies' and IRS's Notice of Adoption of Revised Forms 
on February 2, 2000 (65 FR 5026). Except for filers who file 
electronically, the use of the scannable Form 5500 is mandatory for 
1999 and all later plan year filings.
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    \1\ Information concerning these technical changes may be found 
in the footnote at 65 FR 5027 in the Agencies' Notice of Adoption of 
Revised Forms published in the Federal Register on February 2, 2000.
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    The 1999 and later Forms 5500 are available in two different 
formats. Both have the same data elements, but provide filers with a 
choice of formats for preparing the form. The formats are referred to 
as ``machine print'' and ``hand print.'' EFAST is designed to accept 
only approved machine print and hand print forms. The Agencies expect 
vendors to offer EFAST-approved computer software that may be used to 
complete the 2000 and later versions of either the machine print or the 
hand print Form 5500. Filers completing the Form 5500 by hand or 
typewriter must use the official government-produced hand print forms 
because the EFAST system uses optical character recognition technology 
to scan the data entries on the specially designed forms that enable 
the computer to read the forms.
    The hand print forms can be filed only on paper by mail or approved 
private delivery services. The machine print forms may be printed out 
and filed on paper by mail or approved private delivery service, 
transmitted on-line via modem, or transferred to floppy disks, tapes, 
or CD-ROMs and filed via mail or approved private delivery service. 
Electronic filers submitting via modem must use approved EFAST 
transmitters. Additional information concerning EFAST filing 
requirements may be found on the EFAST website, or by calling 1-866-
463-3278 Monday through Friday from 8 a.m. to 8 p.m. Eastern Time.
    In conjunction with the implementation of EFAST, the Department of 
Labor's Pension and Welfare Benefits Administration (PWBA) assumed the 
administrative responsibility for accepting the Form 5500 and Form 
5500-EZ \2\ filings of plan year 1999 and all future plan years. These 
forms had previously been filed with the IRS.
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    \2\ This preclearance notice does not pertain to the information 
collection request related to the Form 5500-EZ.
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II. Desired Focus of Comments

    The Agencies are particularly interested in comments that:
     Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the Agencies, 
including whether the information will have practical utility;
     Evaluate the accuracy of the Agencies' 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

    The Agencies intend to request an extension of the currently 
approved ICR. Although the 2001 Form 5500 Series is not yet available, 
the Agencies will not be making changes that would be substantive or 
material for purposes of PRA 95. A limited number of technical 
modifications and clarifications of the forms and instructions are 
being considered at this time to address EFAST-related processing 
issues and recognize certain regulatory adjustments.
    Agencies: Department of Labor, Pension and Welfare Benefits 
Administration; Pension Benefit Guaranty Corporation (PBGC).
    Title: Form 5500 Annual Return/Report of Employee Benefit Plan.
    Type of Review: Extension of currently approved collections.
    OMB Numbers: 1210-0110 (PWBA); 1212-0057 (PBGC).
    Affected Public: Individuals or households; business or other for-
profit; not-for-profit institutions.
    Form Number: Form 5500.
    Total Respondents: 863,682.
    Total Responses: 863,682.
    Frequency of Response: Annually.
    Estimated Burden Hours: 1,847,163 for PWBA; 3,859 for PBGC.
    Estimated Burden Cost (Operating and Maintenance): $546,789,000 for 
PWBA; $2,554,000 for PBGC.
    Comments submitted in response to this request 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: June 18, 2001.
Gerald B. Lindrew,
Deputy Director, Office of Policy and Research, Pension and Welfare 
Benefits Administration.
Stuart A. Sirkin,
Director, Corporate Policy and Research Department, Pension Benefit 
Guaranty Corporation.
[FR Doc. 01-15638 Filed 6-20-01; 8:45 am]
BILLING CODE 4510-29-P