[Federal Register Volume 65, Number 11 (Tuesday, January 18, 2000)]
[Notices]
[Pages 2647-2648]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-1093]


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DEPARTMENT OF LABOR

Pension and Welfare Benefits Administration


Proposed Extension of Information Collection Request Submitted 
for Public Comment and Recommendation; Definition of ``Plan Assets''--
Participant Contributions

ACTION: Notice.

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SUMMARY: The Department of Labor (the Department), as part of its 
continuing effort to reduce paperwork and respondent burden, provides 
the general public and Federal agencies with an opportunity to comment 
on proposed and/or 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 Pension and Welfare Benefits 
Administration is soliciting comments concerning the proposed extension 
of a currently approved collection of information, Definition of Plan 
Assets--Participant Contributions, CFR Sec. 2510.3-102. A copy of the 
proposed information collection request can be obtained by contacting 
the individual listed below in the address section of this notice.

DATES:  Written comments must be submitted on or before March 20; 2000.

ADDRESSES:  Gerald B. Lindrew, Department of Labor, Pension and Welfare 
Benefits Administration, 200 Constitution Avenue, NW, Washington, D.C. 
20210, (202) 219-4782 (not a toll-free number), FAX (202) 219-4745.

SUPPLEMENTARY INFORMATION:

I. Background

    This regulation describes when certain monies, which a participant 
pays to or has withheld by an employer for contribution to an employee 
benefit plan, are ``plan assets'' for purposes of Title I of the 
Employee Retirement Security Act of 1974 (ERISA) and the related 
prohibited transaction provisions of the Internal Revenue Code (IRC). 
The regulation establishes that participant contributions to an 
employee pension benefit plan become plan assets on the earliest date 
that they can reasonably be segregated from an employer's general 
assets, but in no event later than 15 business days for pension plans, 
90 days for welfare plans, and, in the case of SIMPLE Retirement 
Accounts, 30 days following the month in which the contribution amounts 
would otherwise have been payable to the participant in cash.
    The regulation also establishes a procedure (for pension plans 
only) whereby an employer may obtain an additional 10 business days to 
comply with the contribution time limits. In order to take advantage of 
this opportunity, an employer is required to satisfy certain exemption 
conditions, including notification to participants, bonding, and 
certification to the Secretary of the Department of Labor when the 
funds are transmitted. These conditions are intended to protect 
participant contributions and provide the Department with adequate 
notice of an employer's compliance.

II. Desired Focus of Comments

    The Department of Labor (Department) is particularly interested in 
comments which:
    <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 regulation provides guidance for fiduciaries, participants, and 
beneficiaries of employee benefit plans on the requirements for 
transmission of employee contributions withheld from wages. Extension 
of the information collection provision of the regulation is important 
because delays in the transmittal of funds may result in lost earnings 
to pension plan participants and beneficiaries. In addition, for those 
employers who may have difficulty meeting regulation deadlines for 
participant contribution transmissions, the extension provision of the 
regulation provides an alternate means of employer compliance with the 
regulation, while providing participants, beneficiaries, and the 
Department with sufficient information to protect their rights under 
ERISA.
    This notice requests comments on the extension of the ICR included 
in the regulation governing the definition of ``plan assets.'' The 
Department is not proposing or implementing changes to the existing ICR 
at this time. Comments received in response to this notice will be 
incorporated in the submission to OMB for continued clearance of the 
ICR.
    Type of Review: Extension.
    Agency: Pension and Welfare Benefits Administration.
    Title: Definition of Plan Assets--Participant Contributions.
    OMB Number: 1210-0100.
    Affected Public: Business or other for-profit, Not-for-profit 
institutions, Individuals.

[[Page 2648]]

    Total Respondents: 1.
    Frequency: On occasion.
    Total Responses: 1.
    Average Time Per Response: 6 hours.
    Estimated Total Burden Hours: 2.
    Total Burden Cost (Operating and Maintenance): $300.
    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: January 11, 2000.
Gerald B. Lindrew,
Deputy Director, Office of Policy and Research, Pension and Welfare 
Benefits Administration.
[FR Doc. 00-1093 Filed 1-14-00; 8:45 am]
BILLING CODE 4510-29-M