[Federal Register Volume 63, Number 105 (Tuesday, June 2, 1998)]
[Notices]
[Pages 30023-30024]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-14544]


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DEPARTMENT OF LABOR

Pension and Welfare Benefits Administration


Proposed Extension of Information Collection Request Submitted 
for Public Comment and Recommendations; Prohibited Transaction Class 
Exemption 76-1

ACTION: Notice.

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SUMMARY: The Department of Labor, 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, Prohibited Transaction Class 
Exemption 76-1. A copy of the proposed information collection request 
can be obtained by contacting the employee listed below in the contact 
section of this notice.

DATES: Written comments must be submitted on or before August 3, 1998. 
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.

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

    Prohibited Transaction Class Exemption 76-1 permits parties in 
interest, under specified conditions, to (A) make delinquent employer 
contributions, (B) receive loans, and (C) obtain office space, 
administrative services and goods from plans. In the absence of this 
exemption, certain aspects of these transactions might be prohibited by 
section 406 of the Employee Retirement Income Security Act (ERISA).

II. Current Actions

    This existing collection of information should be continued because 
without the relief provided by this exemption, contributing employers 
would not be able to make late or partial payments to plans, even in 
justifiable circumstances; contributing employers would be unable to 
obtain construction financing from plans and the plans would be denied 
this investment opportunity; and plans would not be able to receive 
income from leasing available office space or provide services to 
certain parties in interest. The recordkeeping requirements 
incorporated within the class exemption are intended to protect the 
interests of plan participants and beneficiaries. Each part of the 
exemption differs somewhat in paperwork. Under Part A, the terms of an 
arrangement or agreement between a plan and a participating employer 
extending time for a contribution or accepting less than the amount 
owed must be set forth in writing. Also, a determination by a plan to 
consider an unpaid employer contribution as uncollectible must be set 
forth in writing. Under Part B, before a construction loan is made by a 
plan to a participating employer, the employer and the plan must 
receive a written commitment for permanent financing from a person 
other than the plan concerning full repayment of the loan upon 
completion of construction. In addition, the plan must maintain for six 
years such records as are necessary to enable the Department, Internal 
Revenue Service (IRS), et al., to determine whether the conditions of 
the exemption have been met. Part C permits plans to lease office space 
and provide administrative services or sell goods to a participating 
employer or union or to another plan. Under Part C, the plan must 
maintain for six years following the date of termination of the lease 
or of the provision of services such records as are necessary to enable 
persons from the DOL, IRS, et al., to determine whether the conditions 
of the exemption have been met.
    Type of Review: Extension.
    Agency: Pension and Welfare Benefits Administration.
    Title: Prohibited Transaction Class Exemption 76-1.
    OMB Number: 1210-0058.
    Recordkeeping: 6 years.
    Affected Public: Business or other for-profit, Not-for-profit 
institutions, Individuals.
    Total Respondents: 3,000.
    Frequency: On occasion.
    Total Responses: 3,000.
    Average Time Per Response: 15 minutes.
    Estimated Total Burden Hours: 750.
    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.


[[Page 30024]]


    Dated: May 28, 1998.
Gerald B. Lindrew,
Deputy Director, Pension and Welfare Benefits Administration, Office of 
Policy and Research.
[FR Doc. 98-14544 Filed 6-1-98; 8:45 am]
BILLING CODE 4510-29-M