[Federal Register Volume 63, Number 116 (Wednesday, June 17, 1998)]
[Notices]
[Pages 33094-33095]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-16088]


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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 preclearance 
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 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 the collection 
of information included in the alternative method of compliance for 
certain simplified employee pensions regulation issued pursuant to the 
authority of section 110 of the Employee Retirement Income Security Act 
of 1974 (ERISA) which authorizes the Secretary to prescribe an 
alternative method of compliance with the reporting and disclosure 
requirements of Title I of ERISA for certain simplified pension plans 
as described in section 408(k) of the Internal Revenue Code of 1986 
(the Code), as amended (29 CFR 2520.104-49). A copy of the proposed 
information collection request (ICR) can be obtained by contacting the 
office listed below in the addressee section of this notice.

DATES: Written comments must be submitted to the office listed in the 
addressee section below on or before August 17, 1998. The Department of 
Labor 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;
    <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-5647, Washington, DC 20210. 
Telephone: (202) 219-4782 (this is not a toll-free number).

SUPPLEMENTARY INFORMATION: 

I. Background

    Section 110 of ERISA authorizes the Secretary to prescribe 
alternative methods of compliance with the reporting and disclosure 
requirements of Title I of ERISA for pension plans. Simplified employee 
pensions (SEPs) are established in section 408(k) of the Code. Although 
SEPs are primarily a development of the Code subject to its 
requirements, SEPs are also pension plans subject to the reporting and 
disclosure requirements of Title I of ERISA.
    The Department previously issued a regulation under the authority 
of section 110 of ERISA (29 CFR 2520.104-49) that intended to relieve 
sponsors of certain SEPs from ERISA's Title I reporting and disclosure 
requirements by prescribing an alternative method of compliance. These 
SEPs are, for purposes of this Notice, referred to as ``non-model'' 
SEPs because they exclude those SEPs which are created through use of 
Internal Revenue Service (IRS) Form 5305-SEP, and those SEPs in which 
the employer influences the employees as to the choice of IRAs to which 
employer contributions will be made and prohibits withdrawals by 
participants. The disclosure requirements in this regulation were 
developed in conjunction with the Internal Revenue Service (IRS Notice 
81-1). Accordingly, sponsors of ``non-model'' SEPs who satisfy the 
limited disclosure requirements of the regulation are relieved from 
otherwise applicable reporting and disclosure requirements under Title 
I of ERISA, including the requirements to file annual reports (Form 
5500 Series) with the Department, and to furnish summary plan 
descriptions (SPDs) and summary annual reports (SARs) to participants 
and beneficiaries.
    This ICR includes specific aspects of the limited disclosure 
requirements for eligible ``non-model'' SEPs. The ICR generally 
requires timely written disclosure to employees eligible to participant 
in ``non-model'' SEPs, including specific information concerning: 
Participation requirements; allocation formulas for employer 
contributions; designated contact persons for further information; and 
for employer recommended IRAs, specific terms of the IRAs such as rates 
of return and any restrictions on withdrawals. Moreover, general 
information is required that provides a clear explanation of: the 
operation of the ``non-model'' SEP; participation requirements and any 
withdrawal restrictions; and the tax treatment of the SEP-related IRA. 
Furthermore, statements must be provided that inform participants of: 
any other IRAs under ``non-model'' SEP other than that to which 
employer contributions are made; any options regarding rollovers and 
contributions to other IRAs; descriptions of IRS disclosure 
requirements to participants and information regarding social security 
integration (if applicable); and timely notification of any amendments 
to the terms of the ``non-model'' SEP.

II. Current Actions

    The Office of the Management and Budget's approval of this ICR will 
expire on September 30, 1998. The existing

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collection of information should be continued because the alternative 
disclosure arrangement provided through this regulation relieves 
sponsors of ``non-model'' SEPs of most of the reporting and disclosure 
requirements under Title I of ERISA. Also, the disclosure requirements 
set forth in this regulation, insure that administrators of ``non-
model'' SEPs provide participants with specific written information 
concerning SEPs.
    Agency: Department of Labor, Pension and Welfare Benefits 
Administration.
    Title: Alternative Method of Compliance for Certain SEPs pursuant 
to 29 CFR 2520.104-49.
    Type of Review: Extension of a currently approved collection.
    OMB Numbers: 1210-0034.
    Affected Public: Individuals or households; Business or other for-
profit; Not-for-profit institutions.
    Total Respondents: 1,393.
    Total Responses: 1,393.
    Frequency of Response: On occasion.
    Total Annual Burden: 116 hours.
    Comments submitted in response to this comment request 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 10, 1998.
Gerald B. Lindrew,
Deputy Director, Pension and Welfare Benefits Administration Office of 
Policy and Research.
[FR Doc. 98-16088 Filed 6-16-98; 8:45 am]
BILLING CODE 4510-29-M