[Federal Register Volume 66, Number 135 (Friday, July 13, 2001)]
[Notices]
[Pages 36806-36807]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-17552]


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DEPARTMENT OF LABOR

Pension and Welfare Benefits Administration


Proposed Extension of Information Collection Request Submitted 
for Public Comment and Recommendations; Alternative Method of 
Compliance for Certain SEPs Pursuant to 29 CFR 2520.104-49

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 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 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 collection 
of information included in the alternative method of compliance for 
certain simplified employee pensions regulation (29 CFR 2520.104-49). 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.

DATES: Written comments must be submitted to the office listed in the 
addressee section below on or before September 11, 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, DC 20210. Telephone: 
(202) 219-4782, FAX (202) 219-4782 (these are not toll-free numbers).

SUPPLEMENTARY INFORMATION:

[[Page 36807]]

I. Background

    Section 110 of the Employment Retirement Income Security Act 
(ERISA) authorizes the Secretary to prescribe alternative methods of 
compliance with the reporting and disclosure requirements of Title I of 
ERISA for pension plans. Simplified employee pensions (SEPs) are 
established in section 408(k) of the Internal Revenue Code (Code). 
Although SEPs are primarily a development of the Code and subject to 
its requirements, SEPs are also pension plans subject to the reporting 
and disclosure requirements of Title I of ERISA.
    The Department previously issued a regulation under the authority 
of section 110 of ERISA (29 CFR 2520.104-49) that intended to relieve 
sponsors of certain SEPs from ERISA's Title I reporting and disclosure 
requirements by prescribing an alternative method of compliance. These 
SEPs are, for purposes of this Notice, referred to as ``non-model'' 
SEPs because they exclude (1) those SEPs which are created through use 
of Internal Revenue Service (IRS) Form 5305-SEP, and (2) those SEPs in 
which the employer limits or influences the employees' choice to IRAs 
into which employers' contributions will be made and on which 
participant withdrawals are prohibited. The disclosure requirements in 
this regulation were developed in conjunction with the Internal Revenue 
Service (IRS Notice 81-1). Accordingly, sponsors of ``non-model'' SEPs 
that satisfy the limited disclosure requirements of the regulation are 
relieved from otherwise applicable reporting and disclosure 
requirements under Title I of ERISA, including the requirements to file 
annual reports (Form 5500 Series) with the Department, and to furnish 
summary plan descriptions and summary annual reports to participants 
and beneficiaries.
    This ICR includes four separate disclosure requirements. First, at 
the time an employee becomes eligible to participate in the SEP, the 
administrator of the SEP must furnish the employee in writing specific 
and general information concerning the SEP; a statement on rates, 
transfers and withdrawals; and a statement on tax treatment. Second, 
the administrator of the SEP must furnish participants with information 
concerning any amendments. Third, the administrator must notify 
participants of any employer contributions made to the IRA. Fourth, in 
the case of a SEP that provides integration with Social Security, the 
administrator shall provide participants with statement on Social 
Security taxes and the integration formula used by the employer.

II. Desired Focus of Comments

    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 clarity of the 
information to be collected;
     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 existing collection of information should be continued because 
the alternative disclosure arrangement provided through this regulation 
relieves sponsors of ``non-model'' SEPs of most of the reporting and 
disclosure requirements under Title I of ERISA. Also, the disclosure 
requirements set forth in this regulation, insure that administrators 
of ``non-model'' SEPs provide participants with specific written 
information concerning SEPs.
    Type of Review: Extension.
    Agency: Pension and Welfare Benefits Administration, Department of 
Labor.
    Title: Alternative Method of Compliance for Certain SEPs pursuant 
to 29 CFR 2520.104-49.
    OMB Numbers: 1210-0034.
    Affected Public: Individuals or households; Business or other for-
profit; Not-for-profit institutions.
    Total Respondents: 460.
    Total Responses: 20,700.
    Frequency of Response: On occasion.
    Average Time per Response: 35 minutes.
    Estimated Total Annual Burden: 2,000 hours.
    Total Burden Cost (operating/maintenance): $7,900.
    Comments submitted in response to this comment 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: July 9, 2001.
Gerald B. Lindrew,
Deputy Director, Pension and Welfare Benefits Administration, Office of 
Policy and Research.
[FR Doc. 01-17552 Filed 7-12-01; 8:45 am]
BILLING CODE 4510-29-P