[Federal Register Volume 69, Number 231 (Thursday, December 2, 2004)]
[Notices]
[Pages 70156-70157]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-26545]


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DEPARTMENT OF LABOR

Employee Benefits Security 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

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 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

[[Page 70157]]

requirements on respondents can be properly assessed. Currently, the 
Employee Benefits Security Administration is soliciting comments on 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 information collection request (ICR) can be obtained 
by contacting the individual shown in the ADDRESSES section of this 
notice.

DATES: Written comments must be submitted to the office shown in the 
ADDRESSES section on or before January 31, 2005.

ADDRESSES: Gerald B. Lindrew, 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).

SUPPLEMENTARY INFORMATION:

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. Review Focus

    The Department of Labor (Department) 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; and
    <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 submissions of responses.

III. Current Actions

    The Office of Management and Budget's (OMB) approval of this ICR 
will expire on February 28, 2005. The ICR 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. Additionally, the 
disclosure requirements set forth in this regulation, insure that 
administrators of ``non-model'' SEPs provide participants with specific 
written information concerning SEPs. 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: Employee Benefits Security Administration, Department of 
Labor.
    Title: Alternative Method of Compliance for Certain SEPs pursuant 
to 29 CFR 2520.104-49.
    Type of Review: Extension of a currently approved collection of 
information.
    OMB Number: 1210-0034.
    Affected Public: Individuals or households; business or other for-
profit; not-for-profit institutions.
    Respondents: 460.
    Responses: 20,700.
    Frequency of Response: On occasion.
    Average Response Time: 35 minutes.
    Estimated Total Burden Hours: 2,000.
    Total Burden Cost (operating/maintenance): $7,900.

    Dated: November 24, 2004.
Gerald B. Lindrew,
Deputy Director, Office of Policy and Research, Employee Benefits 
Security Administration.
[FR Doc. 04-26545 Filed 12-1-04; 8:45 am]
BILLING CODE 4510-29-P