[Federal Register Volume 79, Number 98 (Wednesday, May 21, 2014)]
[Notices]
[Pages 29208-29210]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-11749]


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DEPARTMENT OF LABOR

Employee Benefits Security Administration


Proposed Extension of Information Collection Requests Submitted 
for Public Comment

AGENCY: Employee Benefits Security Administration, Department of Labor.

ACTION: Notice.

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SUMMARY: The Department of Labor (the Department), in accordance with 
the Paperwork Reduction Act of 1995 (PRA 95) (44 U.S.C. 3506(c)(2)(A)), 
provides the general public and Federal agencies with an opportunity to 
comment on proposed and continuing collections of information. This 
helps the Department assess the impact of its information collection 
requirements and minimize the public's reporting burden. It also helps 
the public understand the Department's information collection 
requirements and provide the requested data in the desired format. The 
Employee Benefits Security Administration (EBSA) is soliciting comments 
on the proposed extension of the information collection requests (ICRs) 
contained in the documents described below. A copy of the ICRs may be 
obtained by contacting the office listed in the ADDRESSES section of 
this notice. ICRs also are available at reginfo.gov (http://www.reginfo.gov/public/do/PRAMain).

DATES: Written comments must be submitted to the office shown in the 
ADDRESSES section on or before July 21, 2014.

ADDRESSES: G. Christopher Cosby, Department of Labor, Employee Benefits 
Security Administration, 200 Constitution Avenue NW., Washington, DC 
20210, (202) 693-8410, FAX (202) 693-4745 (these are not toll-free 
numbers).

I. Supplementary Information

    This notice requests public comment on the Department's request for 
extension of the Office of Management and Budget's (OMB) approval of 
ICRs contained in the rules and prohibited transactions described 
below. The Department is not proposing any changes to the existing ICRs 
at this time. An agency may not conduct or sponsor, and a person is not 
required to respond to, an information collection unless it displays a 
valid OMB control number. A summary of the ICRs and the current burden 
estimates follows:
    Agency: Employee Benefits Security Administration, Department of 
Labor.
    Title: Request for Assistance from Department of Labor, EBSA.
    Type of Review: Extension of a currently approved collection of 
information.
    OMB Number: 1210-0146.
    Affected Public: Individuals or households.
    Respondents: 30,000.
    Responses: 30,000.
    Estimated Total Burden Hours: 15,000.
    Estimated Total Burden Cost (Operating and Maintenance): $3,100.
    Description: The Department of Labor's Employee Benefits Security 
Administration (EBSA) maintains a program designed to provide education 
and technical assistance to participants and beneficiaries as well as 
to employers, plan sponsors, and service providers related to their 
health and retirement benefit plans. EBSA assists participants in 
understanding their rights, responsibilities, and benefits under 
employee benefit law and intervenes informally on their behalf with the 
plan sponsor in order to assist them in obtaining the health and 
retirement benefits to which they may have been inappropriately denied,

[[Page 29209]]

which can avert the necessity for a formal investigation or a civil 
action. EBSA maintains a toll-free telephone number through which 
inquirers can reach Benefits Advisors in ten Regional Offices.
    EBSA also makes a request for assistance form available on its Web 
site for those wishing to contact EBSA online. Contact with EBSA is 
entirely voluntary. The Web form includes basic identifying information 
which is necessary for EBSA to contact the inquirer--first name, last 
name, street address, city, zip code, and telephone number--as well as 
information to improve customer service and enhance its capacity to 
handle greater inquiry volume, such as the plan type, broad categories 
of problem type, contact information for responsible parties, and a 
mechanism for the inquirer to attach relevant documents.
    This information is used by EBSA to make informed and efficient 
decisions when contacting inquirers who have requested EBSA's informal 
assistance with understanding their rights and obtaining benefits they 
may have been denied inappropriately. EBSA uses the information to 
evaluate its service to inquirers, support the development of a broader 
understanding of the nature of current issues in employee benefit 
plans, and to respond to requests for information regarding employee 
benefit plans from members of Congress and governmental oversight 
entities in accordance with ERISA section 513. The ICR was approved by 
the Office of Management and Budget (OMB) under OMB Control Number 
1210-0146 and is scheduled to expire on September 30, 2014.
    Agency: Employee Benefits Security Administration, Department of 
Labor.
    Title: Procedure for Application for Exemption from the Prohibited 
Transaction Provisions of Section 408(a) of the Employee Retirement 
Income Security Act of 1974 (ERISA).
    Type of Review: Extension of a currently approved information 
collection.
    OMB Number: 1210-0060.
    Affected Public: Businesses or other for-profits.
    Respondents: 56.
    Responses: 22,925.
    Estimated Total Burden Hours: 2,564.
    Estimated Total Burden Cost (Operating and Maintenance): 
$1,547,000.
    Description: Both ERISA and the Code contain various statutory 
exemptions from the prohibited transaction rules. In addition, section 
408(a) of ERISA authorizes the Secretary of Labor to grant 
administrative exemptions from the restrictions of ERISA sections 406 
and 407(a), while section 4975(c)(2) of the Code authorizes the 
Secretary of the Treasury or his delegate to grant exemptions from the 
prohibitions of Code section 4975(c)(1). Sections 408(a) of ERISA and 
4975(c)(2) of the Code also direct the Secretary of Labor and the 
Secretary of the Treasury, respectively, to establish procedures to 
carry out the purposes of these sections.
    Under section 3003(b) of ERISA, the Secretary of Labor and the 
Secretary of the Treasury are directed to consult and coordinate with 
each other with respect to the establishment of rules applicable to the 
granting of exemptions from the prohibited transaction restrictions of 
ERISA and the Code. Under section 3004 of ERISA, moreover, the 
Secretary of Labor and the Secretary of the Treasury are authorized to 
develop jointly rules appropriate for the efficient administration of 
ERISA.
    Under section 102 of Reorganization Plan No. 4 of 1978 
(Reorganization Plan No. 4), the foregoing authority of the Secretary 
of the Treasury to issue exemptions under section 4975 of the Code was 
transferred, with certain enumerated exceptions not discussed herein, 
to the Secretary of Labor. Accordingly, the Secretary of Labor now 
possesses the authority under section 4975(c)(2) of the Code, as well 
as under section 408(a) of ERISA, to issue individual and class 
exemptions from the prohibited transaction rules of ERISA and the Code.
    On April 28, 1975, the Department published ERISA Procedure 75-1 in 
the Federal Register (40 FR 18471). This procedure provided necessary 
information to the affected public regarding the procedure to follow 
when requesting an exemption. On October 27, 2011, the Department 
issued its current exemption procedure regulation, which superseded 
ERISA Procedure 75-1 (and intervening amendments).
    The amended rule by the Department expands the ICR contained in 
sections 2570.34 and 2570.35 of the current exemption procedure 
regulation in several respects. For instance, the current requirement 
of specialized statements from qualified independent appraisers, where 
applicable, includes the appraiser's rationale, credentials, and a 
statement regarding the appraiser's independence from the parties 
involved in the transaction. In this connection, the appraisal report 
prepared by the independent appraiser must be current and not more than 
one year old as of the date of the transaction. In addition, the 
content of specialized statements submitted by qualified independent 
fiduciaries, where applicable, require the disclosure of information 
concerning the independent fiduciary's qualifications, duties, 
independence from the parties involved in the transaction, and current 
compensation. The content of specialized statements from other kinds of 
experts would also be clarified in the new regulation to require 
disclosure of information concerning the expert's qualifications and 
their independence from the parties involved in the transaction.
    In addition, a requirement contained in section 2570.43(d) and (e) 
provides the Department with the discretion to require an applicant to 
furnish interested persons with a Summary of Proposed Exemption (SPE). 
Finally, the Department amended Sec.  2570.43 to permit applicants to 
utilize electronic means (such as email) to deliver notice to 
interested persons of a pending exemption, provided that the applicant 
can demonstrate satisfactory proof of electronic delivery to the entire 
class of interested persons. The ICR was approved by OMB under OMB 
Control Number 1210-0060 and is scheduled to expire on October 31, 
2014.
    Agency: Employee Benefits Security Administration, Department of 
Labor.
    Title: Investment Advice Participants and Beneficiaries.
    Type of Review: Extension of a currently approved collection of 
information.
    OMB Number: 1210-0134.
    Affected Public: Businesses or other for-profits.
    Respondents: 16,000.
    Responses: 20,716,000.
    Estimated Total Burden Hours: 3,623,008.
    Estimated Total Burden Cost (Operating and Maintenance): 
$480,725,024.
    Description: On October 25, 2011, the Department issued a final 
regulation implementing the provisions of the statutory exemption set 
forth in sections 408(b)(14) and 408(g) of ERISA, and parallel 
provisions in sections 4975(d)(17) and 4975(f)(8) of the Internal 
Revenue Code of 1986, as amended (Code), relating to the provision of 
investment advice described in section 3(21)(A)(ii) of the Act by a 
fiduciary adviser to participants and beneficiaries in participant-
directed individual account plans, such as 401(k) plans, and 
beneficiaries of individual retirement accounts (and certain similar 
plans).
    Section 408(b)(14) sets forth the investment advice-related 
transactions that will be exempt from the prohibitions of ERISA section 
406 if the requirements of section 408(g) are met.

[[Page 29210]]

The transactions described in section 408(b)(14) are: The provision of 
investment advice to the participant or beneficiary with respect to a 
security or other property available as an investment under the plan; 
the acquisition, holding or sale of a security or other property 
available as an investment under the plan pursuant to the investment 
advice; and the direct or indirect receipt of compensation by a 
fiduciary adviser or affiliate in connection with the provision of 
investment advice or the acquisition, holding or sale of a security or 
other property available as an investment under the plan pursuant to 
the investment advice. The requirements in section 408(g) are met only 
if advice is provided by a fiduciary adviser under an ``eligible 
investment advice arrangement.'' Section 408(g) provides for two 
general types of eligible arrangements: One based on compliance with a 
``fee-leveling'' requirement (imposing limitation on fees and 
compensation of the fiduciary adviser); the other, based on compliance 
with a ``computer model'' requirement (requiring use of a certified 
computer model).
    The regulation contains the following collections of information: 
(1) A fiduciary adviser must furnish an initial disclosure that 
provides detailed information to participants about an advice 
arrangement before initially providing investment advice; (2) a 
fiduciary adviser must engage, at least annually, an independent 
auditor to conduct an audit of the investment advice arrangement for 
compliance with the regulation; (3) if the fiduciary adviser provides 
the investment advice through the use of a computer model, then before 
providing the advice, the fiduciary adviser must obtain the written 
certification of an eligible investment expert as to the computer 
model's compliance with certain standards (e.g., applies generally 
accepted investment theories, unbiased operation, objective criteria) 
set forth in the regulation; and (4) fiduciary advisers must maintain 
records with respect to the investment advice provided in reliance on 
the regulation necessary to determine whether the applicable 
requirements of the regulation have been satisfied.
    The ICR was approved by OMB under OMB Control Number 1210-0134 and 
is scheduled to expire on October 31, 2014.
    Agency: Employee Benefits Security Administration, Department of 
Labor.
    Title: Alternative Method of Compliance for Certain Simplified 
Employee Pensions.
    Type of Review: Extension of a currently approved collection of 
information.
    OMB Number: 1210-0034.
    Affected Public: Businesses or other for-profits.
    Respondents: 36,000.
    Responses: 68,000.
    Estimated Total Burden Hours: 21,000.
    Estimated Total Burden Cost (Operating and Maintenance): $23,000.
    Description: Section 110 of 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 ``nonmodel'' 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. The 
ICR was approved by OMB under OMB Control Number 1210-0034 and is 
scheduled to expire on December 31, 2014.

II. Focus of Comments

    The Department is particularly interested in comments that:
     Evaluate whether the collections of information are 
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 
collections 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., by 
permitting electronic submissions of responses.

Comments submitted in response to this notice will be summarized and/or 
included in the ICRs for OMB approval of the extension of the 
information collection; they will also become a matter of public 
record.

    Dated: April 29, 2014.
Joseph S. Piacentini,
Director, Office of Policy and Research, Employee Benefits Security 
Administration.
[FR Doc. 2014-11749 Filed 5-20-14; 8:45 am]
BILLING CODE 4510-29-P