[Federal Register Volume 69, Number 193 (Wednesday, October 6, 2004)]
[Notices]
[Pages 59963-59964]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-22432]


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DEPARTMENT OF LABOR

Employee Benefits Security Administration


Proposed Extension of Information Collection Request Submitted 
for Public Comment and Recommendations Prohibited Transaction Class 
Exemption 81-8

AGENCY: Employee Benefits Security Administration, Department of Labor.

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 Employee Benefits Security Administration is 
soliciting comments concerning the proposed extension of a currently 
approved collection of information, Prohibited Transaction Class 
Exemption 81-8 on investment of plan assets in certain types of short-
term investments. 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 on or before December 6, 
2004.

ADDRESSES: 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 81-8 permits the investment 
of plan assets that involve the purchase or other acquisition, holding, 
sale, exchange or redemption by or on behalf of an employee benefit 
plan in certain types of short-term investments. These include 
investments in banker's acceptances, commercial paper, repurchase 
agreements, certificates of deposit, and bank securities. Absent the 
exemption, certain aspects of these transactions might be prohibited by 
section 406 of the Employee Retirement Income Security Act (ERISA).
    Provided that the requirements of the exemption are met, the 
exemption allows plans to invest in certain short term investments in 
debt obligations issued by certain persons who provide services to the 
plan or who are affiliated with such service providers that otherwise 
might be prohibited under sections 406 and 407(a) of ERISA. Without 
this exemption, these types of short term transactions might not be 
permitted.
    In order to ensure that the exemption is not abused, that the 
rights of participants and beneficiaries are protected, and that the 
conditions of the exemption have been satisfied, the Department has 
included in the exemption two basic disclosure requirements. Both 
affect only the portion of the exemption dealing with repurchase 
agreements. The first requirement calls for the repurchase agreements 
between the seller and the plan to be in writing. The second 
requirement obliges the seller of such repurchase agreements to agree 
to provide financial statements to the plan at the time of the sale and 
as future statements are issued. The seller must also represent, either 
in the repurchase agreement or prior to the negotiation of

[[Page 59964]]

each repurchase agreement transaction, that there has been no material 
adverse change in the seller's financial condition since the date that 
the most recent financial statement was furnished which has not been 
disclosed to the plan fiduciary with whom the written agreement is 
made.
    Without the recording and disclosure requirements included in this 
ICR, participants and beneficiaries of a plan would not be protected in 
their investments, the Department would be unable to monitor a plan's 
activities for compliance, and plans would be at a disadvantage in 
assessing the value of certain short-term investment activities.

II. Desired Focus of Comments

    The Department of Labor is particularly interested in comments 
that:
    <bullet> 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;
    <bullet> 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;
    <bullet> Enhance the quality, utility, and clarity of the 
information to be collected;
    <bullet> 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 Office of Management and Budget's (OMB) approval of this ICR 
will expire on November 30, 2004. After considering comments received 
in response to this notice, the Department intends to submit the ICR to 
OMB for continuing approval. No change to the existing ICR is proposed 
or made at this time.
    Agency: Department of Labor, Employee Benefits Security 
Administration.
    Title: Prohibited Transaction Class Exemption 81-8 for Investment 
of Plan Assets in Certain Types of Short-Term Investments.
    Type of Review: Extension of a currently approved collection of 
information.
    OMB Number: 1210-0061.
    Affected Public: Individuals or households; Business or other for-
profit; Not-for-profit institutions.
    Total Respondents: 45,969.
    Total Responses: 229,845.
    Frequency of Response: On occasion.
    Estimated Burden Hours: 31,900.
    Estimated Burden Costs: $85,000.
    Comments submitted in response to this notice 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: September 30, 2004.
Gerald B. Lindrew,
Deputy Director, Employee Benefits Security Administration, Office of 
Policy and Research.
[FR Doc. 04-22432 Filed 10-5-04; 8:45 am]
BILLING CODE 4510-29-P