41678 Federal Register / Vol. 77, No. 136 / Monday, July 16, 2012 / Rules and Regulations 

1 77 FR 5632 (Feb. 3, 2012). 

By the Commission. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2012–17261 Filed 7–13–12; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF LABOR 

Employee Benefits Security 

Administration 

29 CFR Part 2550 

RIN 1210–AB54 

Amendment Relating to Reasonable 

Contract or Arrangement Under 

Section 408(b)(2)—Fee Disclosure/Web 

Page 

AGENCY: Employee Benefits Security 

Administration, Labor. 

ACTION: Direct final rule. 

SUMMARY: This document revises the 

mailing address and web-based 

submission procedures for filing certain 

notices under the Department of Labor 

(Department) Employee Benefits 

Security Administration’s fiduciarylevel fee disclosure regulation under 

section 408(b)(2) of the Employee 

Retirement Income Security Act of 1974 

(ERISA). Responsible plan fiduciaries of 

employee pension benefit plans must 

file these notices with the Department to 

obtain relief from ERISA’s prohibited 

transaction provisions that otherwise 

may apply when a covered service 

provider to the plan fails to disclose 

information in accordance with the 

regulation’s requirements. 

DATES: This amendment to the 408(b)(2) 

regulation is effective September 14, 

2012, without further action or notice, 

unless significant adverse comment is 

received by August 15, 2012. If 

significant adverse comment is received, 

the Department will publish a timely 

withdrawal of this amendment in the 

Federal Register. 

ADDRESSES: Written comments may be 

submitted to the addresses specified 

below. All comments will be made 

available to the public. Warning: Do not 

include any personally identifiable 

information (such as name, address, or 

other contact information) or 

confidential business information that 

you do not want publicly disclosed. All 

comments may be posted on the Internet 

and can be retrieved by most Internet 

search engines. Comments may be 

submitted anonymously. 

Comments, identified by RIN 1210– 

AB54, may be submitted by one of the 

following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Email: e-ORI@dol.gov. 

• Mail or Hand Delivery: 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: RIN 1210–AB54; Class 

Exemption Notice—Web Submission. 

Comments received by the 

Department of Labor may be posted 

without change to http://www.

regulations.gov and http://www.dol.gov/ 

ebsa, and will be made available for 

public inspection at the Public 

Disclosure Room, N–1513, Employee 

Benefits Security Administration, 200 

Constitution Avenue NW., Washington, 

DC 20210. 

FOR FURTHER INFORMATION CONTACT: 

Allison Wielobob, Office of Regulations 

and Interpretations, Employee Benefits 

Security Administration, (202) 693– 

8500. This is not a toll-free number. 

SUPPLEMENTARY INFORMATION: 

A. Background 

On February 3, 2012, the Department 

published a final regulation under 

ERISA section 408(b)(2) (the ‘‘408(b)(2) 

regulation’’), requiring that certain 

service providers to pension plans 

disclose information about the service 

providers’ compensation and potential 

conflicts of interest.1 These disclosure 

requirements were established to 

provide guidance for compliance with a 

statutory exemption from ERISA’s 

prohibited transaction provisions. If the 

disclosure requirements of the 408(b)(2) 

regulation are not satisfied, a prohibited 

provision of services under ERISA 

section 406(a)(1)(C) will occur, with 

consequences for both the responsible 

plan fiduciary and the covered service 

provider. However, paragraph (c)(1)(ix) 

of the final regulation exempts a 

responsible plan fiduciary from the 

prohibited transaction restrictions, if the 

fiduciary takes certain specified steps 

upon discovery of a disclosure failure. 

Among other steps, the responsible plan 

fiduciary must make a written request to 

the covered service provider for the 

undisclosed information. If the covered 

service provider does not comply with 

this request within 90 days, the 

responsible plan fiduciary must so 

notify the Department. 

The final 408(b)(2) regulation, in 

paragraph (c)(1)(ix)(F), provides two 

alternative methods for submitting such 

notices to the Department. Responsible 

plan fiduciaries may send notices to the 

following address: U.S. Department of 

Labor, Employee Benefits Security 

Administration, Office of Enforcement, 

200 Constitution Ave. NW., Suite 600, 

Washington, DC 20210. Alternatively, 

notices may be sent electronically to 

OE-DelinquentSPnotice@dol.gov. The 

direct final rule published today, and 

described below, amends these 

submission procedures to reflect a new 

mailing address and to provide for 

electronic submission through the 

Department’s Web site. 

B. Overview of Amendment to 408(b)(2) 

Regulation 

The direct final rule being published 

today as part of this notice amends 29 

CFR 2550.408b–2(c)(1)(ix)(F) to revise 

the mailing address and enhance the 

web-based submission procedure for 

responsible plan fiduciaries to file 

required notices under the regulation’s 

fiduciary class exemption provision. 

Fiduciaries may continue to send paper 

notices to the Department; however, a 

dedicated post office box has been 

established to replace the original 

mailing address. The new mailing 

address is: U.S. Department of Labor, 

Employee Benefits Security 

Administration, Office of Enforcement, 

P.O. Box 75296, Washington, DC 20013. 

Further, effective September 14, 2012, 

the Department is eliminating the 

previously available email address (OEDelinquentSPnotice@dol.gov). Instead, 

pursuant to instructions that will be 

separately provided by the Department, 

responsible plan fiduciaries who wish 

to submit notices electronically will be 

able to do so through a dedicated link 

on the Department’s Web site, at www.

dol.gov/ebsa/regs/

feedisclosurefailurenotice.html. This 

Web page will include clear instructions 

for how to submit the required 

notification and will provide immediate 

confirmation to responsible plan 

fiduciaries that the notice has been 

received by the Department. 

The Department believes that the new 

web submission procedure will benefit 

both responsible plan fiduciaries and 

the Department and, therefore, does not 

anticipate any significant adverse 

comment on this amendment. The 

submission process will be easier for 

responsible plan fiduciaries, because the 

Web page will include clear instructions 

and will assist responsible plan 

fiduciaries by ensuring that they include 

all of the information required by the 

regulation’s notice provision. Plan 

fiduciaries, especially for small plans, 

will be more easily able to take 

advantage of the relief provided by the 

408(b)(2) regulation’s class exemption 


wreier-aviles on DSK5TPTVN1PROD with RULES
Federal Register / Vol. 77, No. 136 / Monday, July 16, 2012 / Rules and Regulations 41679 

provision. Further, unlike submissions 

by email or paper mail, the web-based 

submission procedure will include 

immediate, electronic confirmation for 

responsible plan fiduciaries that their 

notice has been received. The online 

submission procedure also will benefit 

the Department by enabling its staff to 

more efficiently receive, process, and 

review class exemption notices under 

the 408(b)(2) regulation, which in turn 

will benefit responsible plan fiduciaries 

who wish to avail themselves of relief 

provided by the regulation’s class 

exemption. The Department expects that 

responsible plan fiduciary errors will be 

fewer, due to the web-based procedures 

that will include clear instructions and 

better ensure that complete information 

is submitted, and that transcription and 

other errors by the Department will be 

fewer, due to the automated procedures 

that will occur when submissions are 

received electronically. 

C. Good Cause Finding That Proposed 

Rulemaking Unnecessary 

Rulemaking under section 553 of the 

Administrative Procedure Act (5 U.S.C. 

551 et seq.) (APA) ordinarily involves 

publication of a notice of proposed 

rulemaking in the Federal Register and 

the public is given an opportunity to 

comment on the proposed rule. 

However, an agency may issue a rule 

without prior notice and comment 

procedures if it determines for good 

cause that public notice and comment 

procedures are impracticable, 

unnecessary, or contrary to the public 

interest for such rule, and incorporates 

a statement of the finding with the 

underlying reasons in the final rule 

issued. For the reasons mentioned in 

section B of this preamble, the 

Department finds that publishing a 

proposed rule and seeking public 

comment is unnecessary. 

Notwithstanding the foregoing, in the 

‘‘Proposed Rules’’ section of today’s 

Federal Register, the Department is 

publishing a separate document that 

will serve as a notice of proposal to 

amend part 2550 as described in this 

direct final rule. If the Department 

receives significant adverse comment 

during the comment period, it will 

publish, in a timely manner, a 

document in the Federal Register 

withdrawing this direct final rule. The 

Department will then address public 

comments in a subsequent final rule 

based on the proposed rule. The 

Department will not institute a second 

comment period on this rule. Any 

parties interested in commenting must 

do so during this comment period. 

D. Regulatory Impact Analysis 

1. Executive Orders 12866 and 13563 

Executive Orders 12866 and 13563 

direct agencies to assess all costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). Executive Order 13563 

emphasizes the importance of 

quantifying both costs and benefits, of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. 

Section 3(f) of Executive Order 12866 

defines a ‘‘significant regulatory action’’ 

as an action that is likely to result in a 

rule (1) Having an annual effect on the 

economy of $100 million or more, or 

adversely and materially affecting a 

sector of the economy, productivity, 

competition, jobs, the environment, 

public health or safety, or State, local or 

tribal governments or communities (also 

referred to as ‘‘economically 

significant’’); (2) creating serious 

inconsistency or otherwise interfering 

with an action taken or planned by 

another agency; (3) materially altering 

the budgetary impacts of entitlement 

grants, user fees, or loan programs or the 

rights and obligations of recipients 

thereof; or (4) raising novel legal or 

policy issues arising out of legal 

mandates, the President’s priorities, or 

the principles set forth in the Executive 

Order. Pursuant to the terms of the 

Executive Order, OMB has been 

determined that this action is not 

‘‘significant’’ within the meaning of 

section 3(f)(4) of the Executive Order 

and therefore is not subject to review by 

OMB. 

2. Regulatory Flexibility Analysis 

The Regulatory Flexibility Act 

(5 U.S.C. 601 et seq.) (RFA) imposes 

certain requirements with respect to 

Federal rules that are subject to the 

notice and comment requirements of 

section 553(b) of the APA (5 U.S.C. 551 

et seq.) and that are likely to have a 

significant economic impact on a 

substantial number of small entities. 

Under Section 553(b) of the APA, a 

general notice of proposed rulemaking 

is not required when an agency, for 

good cause, finds that notice and public 

comment thereon are impracticable, 

unnecessary, or contrary to the public 

interest. This direct final regulation is 

exempt from the APA’s notice and 

comment requirements because the 

Department made a good cause finding 

earlier in this preamble that a general 

notice of proposed rulemaking is not 

necessary. Therefore, the RFA does not 

apply and the Department is not 

required to either certify that this 

regulation would not have a significant 

economic impact on a substantial 

number of small entities or conduct a 

regulatory flexibility analysis. 

Nevertheless, the Department 

carefully considered the likely impact of 

the rule on small entities. The direct 

final rule will enhance the web-based 

submission procedure for responsible 

plan fiduciaries, especially for small 

plans, to file required notices under the 

regulation’s fiduciary class exemption 

provision. The Web page will include 

clear instructions and ensure that 

responsible plan fiduciaries include all 

of the required information and provide 

an immediate electronic confirmation 

that their notice has been received. No 

additional burden is imposed on such 

fiduciaries, because, as discussed earlier 

in this preamble, the direct final rule 

allows them to continue to send notices 

to a dedicated post office box that the 

Department has established to replace 

the original mailing address provided in 

the final rule. Based on the foregoing, 

the Department hereby certifies that the 

proposed rule is not likely to have a 

significant economic impact on a 

substantial number of small entities. 

3. Paperwork Reduction Act 

In accordance with the requirements 

of the Paperwork Reduction Act of 1995 

(PRA) (44 U.S.C. 3506(c)(2)), the 

Department submitted an information 

collection request (ICR) to OMB in 

accordance with 44 U.S.C. 3507(d) for 

the final regulation that was published 

on February 3, 2012. OMB approved the 

ICR on March 29, 2012, under control 

number 1210–0133, which is currently 

schedule to expire on March 31, 2015. 

A copy of the ICR may be obtained by 

contacting the PRA addressee shown 

below. 

PRA Addressee: G. Christopher 

Cosby, 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) 219–8410; Fax: (202) 

219–4745. These are not toll free 

numbers. 

OMB has determined that the direct 

final rule does not implement any 

substantive or material change to the 

information collection; therefore, no 

change is made to the ICR and no 

further review is requested of OMB at 

this time. 

4. Congressional Review Act 

This direct final rule is subject to the 

Congressional Review Act provisions of 


wreier-aviles on DSK5TPTVN1PROD with RULES
41680 Federal Register / Vol. 77, No. 136 / Monday, July 16, 2012 / Rules and Regulations 

the Small Business Regulatory 

Enforcement Fairness Act of 1996 

(5 U.S.C. 801 et seq.) and has been 

transmitted to Congress and the 

Comptroller General for review. 

5. Unfunded Mandates Reform Act 

For purposes of the Unfunded 

Mandates Reform Act of 1995 (Pub. L. 

104–4), as well as Executive Order 

12875, the direct final rule does not 

include any Federal mandate that may 

result in expenditures by State, local, or 

tribal governments in the aggregate of 

more than $100 million, adjusted for 

inflation, or increase expenditures by 

the private sector of more than $100 

million, adjusted for inflation. 

6. Federalism Statement 

Executive Order 13132 (August 4, 

1999) outlines fundamental principles 

of federalism, and requires the 

adherence to specific criteria by Federal 

agencies in the process of their 

formulation and implementation of 

policies that have substantial direct 

effects on the States, the relationship 

between the national government and 

States, or on the distribution of power 

and responsibilities among the various 

levels of government. The direct final 

rule does not have federalism 

implications because it has no 

substantial direct effect on the States, on 

the relationship between the national 

government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. Section 514 of 

ERISA provides, with certain exceptions 

specifically enumerated, that the 

provisions of Titles I and IV of ERISA 

supersede any and all laws of the States 

as they relate to any employee benefit 

plan covered under ERISA. The 

requirements implemented in the direct 

final rule do not alter the fundamental 

reporting and disclosure requirements 

of the statute with respect to employee 

benefit plans, and, as such, have no 

implications for the States or the 

relationship or distribution of power 

between the national government and 

the States. 

List of Subjects in 29 CFR Part 2550 

Employee benefit plans, Exemptions, 

Fiduciaries, Investments, Pensions, 

Prohibited transactions, Reporting and 

recordkeeping requirements, and 

Securities. 

For the reasons set forth in the 

preamble, the Department amends 

chapter XXV, subchapter F, part 2550 of 

title 29 of the Code of Federal 

Regulations as follows: 

SUBCHAPTER F—FIDUCIARY 

RESPONSIBILITY UNDER THE 

EMPLOYEE RETIREMENT INCOME 

SECURITY ACT OF 1974 

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 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–1 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) and sec. 102, 

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

App. 1. Sec. 2550.408b–19 also issued under 

sec. 611, Pub. L. 109–280, 120 Stat. 780, 972, 

and sec. 102, Reorganization Plan No. 4 of 

1978, 5 U.S.C. App. 1. Sec. 2550.412–1 also 

issued under 29 U.S.C. 1112. 

■ 2. Section 2550.408b–2 is amended by 

revising paragraph (c)(1)(ix)(F) to read 

as follows: 

§ 2550.408b–2 General statutory 

exemption for services or office space. 

* * * * * 

(c) * * * 

(1) * * * 

(ix) * * * 

(F) The notice required by paragraph 

(c)(1)(ix)(C) of this section shall be 

furnished to the U.S. Department of 

Labor electronically in accordance with 

instructions published by the 

Department; or may be sent to the 

following address: U.S. Department of 

Labor, Employee Benefits Security 

Administration, Office of Enforcement, 

P.O. Box 75296, Washington, DC 20013; 

and 

* * * * * 

Signed at Washington, DC, this 2nd day of 

July 2012. 

Phyllis C. Borzi, 

Assistant Secretary, Employee Benefits 

Security Administration, Department of 

Labor. 

[FR Doc. 2012–17013 Filed 7–13–12; 8:45 am] 

BILLING CODE 4510–29–P 

DEPARTMENT OF THE INTERIOR 

Office of Surface Mining Reclamation 

and Enforcement 

30 CFR Part 914 

[SATS No. IN–160–FOR; Docket ID: OSM– 

2011–0008] 

Indiana Regulatory Program 

AGENCY: Office of Surface Mining 

Reclamation and Enforcement, Interior. 

ACTION: Final rule; approval of 

amendment. 

SUMMARY: We, the Office of Surface 

Mining Reclamation and Enforcement 

(OSM), are approving amendments to 

the Indiana regulatory program (Indiana 

program) under the Surface Mining 

Control and Reclamation Act of 1977 

(SMCRA or the Act). Indiana proposed 

to revise its rules concerning ownership 

and control provisions, periods of 

liability, performance bond release, 

revegetation standards, underground 

mining explosives, and cessation orders, 

to be no less effective than the 

corresponding Federal regulations, to 

clarify ambiguities, and to improve 

operational efficiency. 

DATES: Effective Date: July 16, 2012. 

FOR FURTHER INFORMATION CONTACT: 

Andrew R. Gilmore, Chief, Alton Field 

Division. Telephone: (317) 226–6700. 

SUPPLEMENTARY INFORMATION: 

I. Background on the Indiana Program 

II. Submission of the Amendment 

III. OSM’s Findings 

IV. Summary and Disposition of Comments 

V. OSM’s Decision 

VI. Procedural Determinations 

I. Background on the Indiana Program 

Section 503(a) of the Act permits a 

State to assume primacy for the 

regulation of surface coal mining and 

reclamation operations on non-Federal 

and non-Indian lands within its borders 

by demonstrating that its program 

includes, among other things, ‘‘a State 

law which provides for the regulation of 

surface coal mining and reclamation 

operations in accordance with the 

requirements of this Act * * *; and 

rules and regulations consistent with 

regulations issued by the Secretary 

pursuant to this Act.’’ See 30 U.S.C. 

1253(a)(1) and (7). On the basis of these 

criteria, the Secretary of the Interior 

(Secretary) conditionally approved the 

Indiana program effective July 29, 1982. 

You can find background information 

on the Indiana program, including the 

Secretary’s findings, the disposition of 

comments, and the conditions of 

approval of the Indiana program in the 

July 26, 1982, Federal Register (47 FR 


wreier-aviles on DSK5TPTVN1PROD with RULES