[Federal Register Volume 70, Number 65 (Wednesday, April 6, 2005)]
[Notices]
[Pages 17475-17476]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-6751]


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DEPARTMENT OF LABOR

Employee Benefits Security Administration


Proposed Extension of Information Collection Request Submitted 
for Public Comment and Recommendations; PTE 86-128

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). 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 Employee Benefits 
Security Administration is soliciting comments concerning the proposed 
extension of a currently approved collection of information, Prohibited 
Transaction Class Exemption 86-128 for certain transactions involving 
employee benefit plans and securities broker-dealers.
    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 
ADDRESSES section below on or before June 6, 2005.

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, 
Employee Benefits Security Administration, 200 Constitution Avenue, 
NW., Room N-5647, Washington, DC 20210. Telephone: (202) 693-8410. Fax: 
(202) 693-4745 (These are not toll-free numbers).

SUPPLEMENTARY INFORMATION:

I. Background

    Prohibited Transaction Class Exemption 86-128 permits persons who 
serve as fiduciaries for employee benefit plans to effect or execute 
securities transactions on behalf of employee benefit plans. The 
exemption also allows sponsors of pooled separate accounts and other 
pooled investment funds to use their affiliates to effect or execute 
securities transactions for such accounts in order to recapture 
brokerage commissions for benefit of employee benefit plans whose 
assets are maintained in pooled separate accounts managed by the 
insurance companies. This exemption provides relief from certain 
prohibitions in section 406(b) of the Employee Retirement Income 
Security Act of 1974 (ERISA) and from the taxes imposed by section 
4975(a) and (b) of the Internal Revenue Code of 1986 (the Code) by 
reason of Code section 4975(c)(1)(E) or (F).
    In order to insure that the exemption is not abused, that the 
rights of participants and beneficiaries are protected, and that the 
exemption's conditions are being complied with, the Department has 
included in the exemption five information collection requirements. The 
first requirement is written authorization executed in advance by an 
independent fiduciary of the plan whose assets are involved in the 
transaction with the broker-fiduciary. The second requirement is, 
within three months of the authorization, the broker-fiduciary furnish 
the independent fiduciary with any reasonably available information 
necessary for the independent fiduciary to determine whether an 
authorization should be made. The information must include a copy of 
the exemption, a form for termination, and a description of the broker-
fiduciary's brokerage placement practices. The third requirement is 
that the broker-fiduciary must provide a termination form to the 
independent fiduciary annually so that the independent fiduciary may 
terminate the authorization without penalty to the plan; failure to 
return the form constitutes continuing authorization. The fourth 
requirement is for the broker-fiduciary to report all transactions to 
the independent fiduciary, either by confirmation slips or through 
quarterly reports. The fifth requirement calls for the broker-fiduciary 
to provide an annual summary of the transactions. The annual summary 
must contain all security transaction-related charges incurred by the 
plan, the brokerage placement practices, and a portfolio turnover 
ratio.

II. Review Focus

    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 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 submissions of responses.

III. Current Actions

    The Department is requesting an extension of the currently approved 
ICR pertaining to Prohibited Transaction Class Exemption 86-128 for 
certain transactions involving employee benefit plans and securities 
broker-dealers. The Department is not proposing or implementing changes 
to the existing ICR at this time.
    Agency: Department of Labor, Employee Benefits Security 
Administration.
    Title: PTE 86-128 for Certain Transactions Involving Employee 
Benefit Plans and Securities Broker-Dealers.
    Type of Review: Extension of a currently approved collection.
    OMB Numbers: 1210-0059.
    Affected Public: Individuals or households; Business or other for-
profit; Not-for-profit institutions.
    Total Respondents: 4,200.
    Total Responses: 284,000.
    Frequency of Response: Quarterly; Annually.
    Total Annual Burden: 93,530 hours.
    Total Annual Cost (Operating & Maintenance): $183,550.
    Comments submitted in response to this request will be summarized 
and/or

[[Page 17476]]

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: March 31, 2005.
Gerald B. Lindrew,
Deputy Director, Office of Policy and Research, Employee Benefits 
Security Administration.
[FR Doc. 05-6751 Filed 4-5-05; 8:45 am]
BILLING CODE 4510-29-P