[Federal Register Volume 63, Number 122 (Thursday, June 25, 1998)]
[Notices]
[Pages 34664-34665]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-16936]


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DEPARTMENT OF LABOR

Pension and Welfare Benefits Administration


Proposed Extension of Information Collection Request Submitted 
for Public Comment and Recommendations

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 preclerance 
consultation program to provide the general public and other 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) (44 U.S.C. 3506(c)(2)(A)). This program helps to 
ensure that requested

[[Page 34665]]

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 81-8 for investment of plan assets in 
certain types of short-term investments. A copy of the proposed 
information collection request (ICR) can be obtained by contacting the 
office listed below in the addresses section of this notice.

DATES: Written must be submitted to the office listed in ADDRESSES 
section below on or before August 24, 1998. The Department of Labor is 
particularly interested in comments which:
    <bullet> Evalaute 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;
    <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 submission of responses.

ADDRESSES: Interested parties are invited to submit written comments 
regarding the collection of information of any or all of the Agencies. 
Send comments to Mr. Gerald B. Lindrew, Office of Policy and Research, 
U.S. Department of Labor, Pension and Welfare Benefits Administration, 
200 Constitution Avenue, NW, Room N-56457, Washington, D.C. 20210. 
Telephone: (202) 219-4782 (this is not a toll-free number).

SUPPLEMENTARY INFORMATION:

I. Background

    Prohibited Transaction Class Exemption 81-8 permits the investment 
of plan assets which involve the purchase or other acquisition, 
holding, sale, exchange or redemption by or on behalf of an employee 
benefit plan of certain types of short-term investments. These include 
investments in banker's acceptances, commercial paper, repurchase 
agreements, certificates of deposit, and bank securities. In absence of 
the exemption, certain aspects of these transactions might be 
prohibited by section 406 of the Employee Retirement Income Security 
Act (ERISA).

II. Current Actions

    The Office of Management and Budget's approval of this ICR will 
expire on September 30, 1998. This existing collection of information 
should be continued because without the relieve provided by this 
exemption, plans would not be able to continue to invest plan assets in 
certain short term investments in debt obligations issued by certain 
persons who provide services to the plan or who are affiliated with 
such service providers. In most instances, the service providers 
engaging in such transactions with the plans are already providing 
services to the plan. Without this exemption, these types of 
transactions could not continue, causing disruption of the existing 
business practices of the plan and the businesses that service them.
    In order to ensure that the exemption is not abused, that the 
rights of participants and beneficiaries are protected, and that the 
exemption's conditions are being complied with, the Department has 
included in the exemption two basic disclosure requirements. Both 
affect only the portion of the exemption dealing with repurchase 
agreements. The first requirement calls for the repurchase agreements 
between the seller and the plan to be in writing. These repurchase 
agreements cover a period of one year or less and may be in the form of 
a blanket agreement for one year. The second requirement obliges the 
seller of such repurchase agreements to agree to provide financial 
statements to the plan at the time of the sale and as the statements 
are issued. The seller must also represent, either in the repurchase 
agreement or prior to each repurchase agreement transaction, that as of 
the time the transaction is negotiated, there has been no material 
adverse change in the seller's financial condition since the date the 
most recent financial statement was furnished that has not been 
disclosed to the plan fiduciary with whom the written agreement is 
made. This requirement may be met by the seller stating in the 
repurchase agreement that by making the sale they are representing that 
there is no material or adverse change their financial condition.
    Agency: Department of Labor, Pension and Welfare Benefits 
Administration.
    Title: Prohibited Transaction Class Exemption 81-8 for Investment 
of Plan Assets in Certain Types of Short-Term Investments.
    Type of Review: Extension of currently approved collection.
    OMB Number: 1210-0061.
    Affected Public: Individuals or households; Business or other for-
profit; Not-for-profit institutions.
    Total Respondents: 18,245.
    Total Responses: 91,225.
    Frequency of Response: On occasion.
    Total Annual Burden: 15,204 hours.
    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: June 19, 1998.
Gerald B. Lindrew,
Deputy Director, Pension and Welfare Benefits Administration, Office of 
Policy and Research.
[FR Doc. 98-16936 Filed 6-24-98; 8:45 am]
BILLING CODE 4570-29-M