31544 Federal Register / Vol. 76, No. 105 / Wednesday, June 1, 2011 / Proposed Rules 

1The amendments to the Department’s 404(c) 

regulation apply for plan years beginning on or after 

November 1, 2011. The proposals contained in this 

document would have no effect on the applicability 

of these amendments. 

2See http://www.dol.gov/ebsa/newsroom/2011/ 

ebsa021111.html. 

public hearing that appeared in the 

Federal Register on Friday, March 18, 

2011 (76 FR 14827) announced that a 

public hearing was scheduled for June 

9, 2011, at 10 a.m. in the IRS 

Auditorium, Internal Revenue Building, 

1111 Constitution Avenue, NW., 

Washington, DC. The subject of the 

public hearing is under section 6103 of 

the Internal Revenue Code. 

The public comment period for the 

proposed rulemaking expired on May 

17, 2011. The notice of proposed 

rulemaking and notice of public hearing 

instructed those interested in testifying 

at the public hearing to submit an 

outline of the topics to be addressed. As 

of May 23, 2011, no one has requested 

to speak. Therefore, the public hearing 

scheduled for June 9, 2011, is cancelled. 

LaNita VanDyke, 

Chief, Publications and Regulations Branch, 

Legal Processing Division, Associate Chief 

Counsel, Procedure and Administration. 

[FR Doc. 2011–13408 Filed 5–31–11; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF LABOR 

Employee Benefits Security 

Administration 

29 CFR Part 2550 

RIN 1210–AB08 

Requirements for Fee Disclosure to 

Plan Fiduciaries and Participants— 

Applicability Dates 

AGENCY: Employee Benefits Security 

Administration, Labor. 

ACTION: Notice of proposed extension of 

applicability dates. 

SUMMARY: This document proposes to 

extend specified applicability dates of 

the Department’s interim final rule 

concerning fiduciary-level fee 

disclosure (29 CFR 2550.408b–2(c), RIN 

1210–AB08) and final rule concerning 

participant-level fee disclosure (29 CFR 

2550.404a–5, RIN 1210–AB07). These 

rules were published in the Federal 

Register on July 16, 2010 and October 

20, 2010, respectively. Extending these 

dates will more closely align the 

application of the two rules and ensure 

that parties have sufficient time to 

comply with the requirements of the 

rules. 

DATES: Comments on the proposal to 

extend the applicability dates for the 

Department’s fee disclosure rules 

should be submitted to the Department 

on or before June 15, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Michael Del Conte, Office of Regulations 

and Interpretations, Employee Benefits 

Security Administration, (202) 693– 

8500. This is not a toll-free number. 

ADDRESSES: To facilitate the receipt and 

processing of comments, EBSA 

encourages interested persons to submit 

their comments electronically to 

e-ORI@dol.gov, or by using the Federal 

eRulemaking portal http:// 

www.regulations.gov (following 

instructions for submission of 

comments). Persons submitting 

comments electronically are encouraged 

not to submit paper copies. Persons 

interested in submitting comments on 

paper should send or deliver their 

comments (preferably three copies) to: 

Office of Regulations and 

Interpretations, Employee Benefits 

Security Administration, Room N–5655, 

U.S. Department of Labor, 200 

Constitution Avenue, NW., Washington, 

DC 20210, Attention: Fee Disclosure 

Applicability. All comments will be 

available to the public, without charge, 

online at http://www.regulations.gov 

and http://www.dol.gov/ebsa, and at the 

Public Disclosure Room, Employee 

Benefits Security Administration, U.S. 

Department of Labor, Room N–1513, 

200 Constitution Avenue, NW., 

Washington, DC 20210. 

SUPPLEMENTARY INFORMATION: On July 

16, 2010, the Department published in 

the Federal Register an interim final 

rule enhancing required disclosure from 

certain pension plan service providers 

to plan fiduciaries as part of a 

‘‘reasonable’’ contract or arrangement for 

services under ERISA section 408(b)(2) 

(75 FR 41600) (the ‘‘408(b)(2) 

regulation’’). 29 CFR 2550.408b–2(c). 

The Department subsequently published 

in the Federal Register, on October 20, 

2010, a final rule concerning the 

disclosure of plan fee and expense 

information by plan administrators to 

plan participants and beneficiaries (75 

FR 64910) (the ‘‘participant-level 

disclosure regulation’’). 29 CFR 

2550.404a–5. The participant-level 

disclosure regulation includes 

modifications to the disclosure 

requirements in the Department’s 

regulation under ERISA section 404(c), 

at 29 CFR 2550.404c–1 (the ‘‘404(c) 

regulation’’), in order to avoid 

duplication and integrate its 

requirements with those of the new 

participant-level disclosure regulation.1

Unless extended, the effective date for 

the interim final 408(b)(2) regulation 

will be on July 16, 2011 as to both new, 

and pre-existing, contracts or 

arrangements between covered plans 

and covered service providers. The 

Department has received many requests 

that this effective date be extended. A 

significant number of parties have 

argued that more time is essential to 

update systems and procedures for 

information collection and disclosure. 

Pointing out that the Department has 

not yet published a final rule, parties 

have explained that, if the Department 

modifies the current interim final rule, 

service providers will need additional 

time to make further changes. Based on 

these concerns, the Department believes 

that an extension of the rule’s effective 

date would lead to fuller and timelier 

compliance by plans and service 

providers, and thus would be in the 

interests of participants and 

beneficiaries. Moreover, as discussed 

below, an extension will enable the 

Department to align the effective date 

for this regulation with the applicability 

date of the participant-level disclosure 

regulation. Accordingly, in February 

2011, the Department announced its 

intention to extend the 408(b)(2) 

regulation’s effective date until January 

1, 2012.2 The Department has not 

received any negative comments on this 

announcement. The amendments 

proposed in this notice, if finalized, 

would effectuate this announcement. 

Although the final participant-level 

disclosure regulation was effective on 

December 20, 2010, its requirements 

only begin to apply for plan years 

beginning on or after November 1, 2011. 

The regulation also includes a 

transitional rule, in paragraph (j)(3)(i), 

for furnishing disclosures required on or 

before the date on which a participant 

or beneficiary can first direct his or her 

investment. For participants or 

beneficiaries who, as of their plan’s 

applicability date, had the right to direct 

the investment of their individual 

accounts, the plan must furnish these 

initial disclosures no later than 60 days 

after the applicability date. As with the 

408(b)(2) regulation, the Department has 

continued to receive requests that 

additional time be provided in order for 

parties to comply. Further, because the 

Department announced its intention to 

extend the 408(b)(2) regulation’s 

effective date to January 1, 2012, parties 

argue that it would be preferable to 

extend application of the participantlevel disclosure regulation until after 

the effective date of the 408(b)(2) 

regulation. Specifically, these parties 

point to the provision in the 408(b)(2) 

interim final regulation which requires 


sroberts on DSK5SPTVN1PROD with PROPOSALS
Federal Register / Vol. 76, No. 105 / Wednesday, June 1, 2011 / Proposed Rules 31545 

3 29 CFR 2550.408b–2(c)(1)(vi). 

covered service providers to furnish 

information requested by a responsible 

plan fiduciary or plan administrator in 

order to comply with ERISA’s reporting 

and disclosure requirements,3 which 

would include relevant information 

required to comply with the participantlevel disclosure regulation. It would 

facilitate compliance with the 

participant-level disclosure regulation, 

they argue, if contracts and 

arrangements were brought into 

compliance with the 408(b)(2) 

regulation, so that this reporting and 

disclosure provision is in effect, prior to 

the applicability of the participant-level 

disclosure regulation. 

The Department agrees that aligning 

the application of these two regulations 

would assist plan fiduciaries and plan 

administrators in obtaining information 

required to comply with the participantlevel disclosure regulation. Further, the 

Department believes that, similar to the 

408(b)(2) regulation, a limited extension 

is in the best interests of covered 

individual account plans and their 

participants and beneficiaries. Delayed 

application will better afford plans 

sufficient time to ensure an efficient and 

effective implementation of the 

participant-level disclosure regulation. 

To accomplish this end, the Department 

does not believe it is necessary to 

extend the regulation’s effective date or 

its general application to plan years 

beginning on or after November 1, 2011. 

However, the Department proposes to 

extend the transition rule in paragraph 

(j)(3)(i), which specifies the date by 

which initial disclosures must actually 

be provided. Under this proposal, a plan 

would have 120 days (rather than 60) 

after its applicability date to furnish the 

initial disclosures that are otherwise 

required to be furnished before the date 

on which a participant or beneficiary 

can first direct his or her investments. 

Thus, a calendar year plan would have 

to furnish the initial disclosures no later 

than April 30, 2012, and the disclosures 

required by paragraphs (c)(2)(ii) and 

(c)(3)(ii) (e.g., quarterly statement of 

fees/expenses actually deducted) would 

have to be furnished no later than May 

15, 2012. Under the proposed transition 

rule, the initial disclosures must be 

provided to all participants and 

beneficiaries who have the right to 

direct their investments when such 

disclosures are furnished, not just to 

those individuals who had the right to 

direct their investments on the 

applicability date. This is to ensure that 

individuals who become plan 

participants in between the applicability 

date and the end of the 120-day period 

receive the important information 

required under the regulation. To the 

extent the plan also has contracts or 

arrangements with covered service 

providers, as defined by the 408(b)(2) 

regulation, those contracts or 

arrangements must be in compliance 

with the 408(b)(2) regulation as of 

January 1, 2012, in advance of the 

required initial disclosures under the 

participant-level disclosure regulation. 

The Department has not been 

persuaded to extend the application of 

the participant-level disclosure 

regulation, or the 408(b)(2) regulation, 

beyond these dates. Although the 

Department believes it is appropriate to 

provide some relief to help ensure a 

timely, efficient, and coordinated 

implementation of the two rules, the 

Department also believes that it is 

critical for responsible plan fiduciaries, 

plan administrators, and plan 

participants and beneficiaries to benefit 

from the increased transparency 

provided by the rules as soon as 

possible. 

At this time, the Department solicits 

comments on this proposal to formally 

extend the effective date of the 408(b)(2) 

regulation and the transitional rule for 

application of the participant-level 

disclosure regulation. 

List of Subjects in 29 CFR Part 2550 

Employee benefit plans, Exemptions, 

Fiduciaries, Investments, Pensions, 

Prohibited transactions, Real estate, 

Securities, Surety bonds, Trusts and 

Trustees. 

For the reasons set forth in the 

preamble, the Department of Labor 

proposes to amend 29 CFR part 2550 as 

follows: 

PART 2550—RULES AND 

REGULATIONS FOR FIDUCIARY 

RESPONSIBILITY 

1. The authority citation for part 2550 

continues to read as follows: 

Authority: 29 U.S.C. 1135, sec. 102, 

Reorganization Plan No. 4 of 1978, 5 U.S.C. 

App. 1 and Secretary of Labor’s Order No. 6– 

2009, 74 FR 21524 (May 7, 2009). Sec. 

2550.401c–1 also issued under 29 U.S.C. 

1101. Sec. 2550.404a–2 also issued under 

sec. 657, Pub. L. 107–16, 115 Stat. 38. 

Sections 2550.404c–1 and 2550.404c–5 also 

issued under 29 U.S.C. 1104. Sec. 2550.408b– 

1 also issued under 29 U.S.C. 1108(b)(1). Sec. 

2550.408b–19 also issued under sec. 611, 

Pub. L. 109–280, 120 Stat. 780, 972. Sec. 

2550.412–1 also issued under 29 U.S.C. 1112. 

2. Section 2550.404a–5 is amended by 

revising paragraph (j)(3)(i) to read as 

follows: 

§ 2550.404a–5 Fiduciary requirements for 

disclosure in participant-directed individual 

account plans. 

* * * * * 

(j) * * * 

(3) Transitional rules. 

(i) Notwithstanding paragraphs (b), (c) 

and (d) of this section, the initial 

disclosures required on or before the 

date on which a participant or 

beneficiary can first direct his or her 

investments must be furnished no later 

than 120 days after such applicability 

date. 

* * * * * 

3. Section 2550.408b–2 is amended, 

in paragraph (c)(1)(xii), by removing the 

date ‘‘July 16, 2011’’ and adding in its 

place ‘‘January 1, 2012’’. 

Signed at Washington, DC, this 26th day of 

May, 2011. 

Phyllis C. Borzi, 

Assistant Secretary, Employee Benefits 

Security Administration, Department of 

Labor. 

[FR Doc. 2011–13516 Filed 5–31–11; 8:45 am] 

BILLING CODE 4510–29–P 

GENERAL SERVICES 

ADMINISTRATION 

41 CFR Part 102–34 

[FMR Case 2011–102–2; Docket 2011–0011; 

Sequence 1] 

RIN 3090–AJ14 

Federal Management Regulation; 

Motor Vehicle Management 

AGENCY: Office of Governmentwide 

Policy, General Services Administration 

(GSA). 

ACTION: Proposed rule. 

SUMMARY: The General Services 

Administration is proposing to amend 

the Federal Management Regulation 

(FMR) by revising current policy on the 

definitions relating to the rental versus 

the lease of motor vehicles. The 

proposed rule would increase the less 

than 60 continuous day rental 

timeframe to less than 120 continuous 

days and adjust the definition of the 

term ‘‘commercial lease or lease 

commercially’’ accordingly to allow for 

the instances when agencies have a 

valid temporary mission requirement for 

a motor vehicle of 60 continuous days 

or more in duration but of significantly 

fewer days in duration than is typically 

available under commercial leases, 

which commonly require a minimum 

lease period of one year. 

DATES: Interested parties should submit 

comments in writing on or before 


sroberts on DSK5SPTVN1PROD with PROPOSALS