[Federal Register Volume 63, Number 123 (Friday, June 26, 1998)]
[Notices]
[Pages 34935-34936]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-17103]


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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 procedure for applications for exemption 
from the prohibited transaction provisions of section 408(a) of the 
Employee Retirement Income Security Act of 1974 (ERISA) (29 CFR 
Sec. 2570.30, et seq.). The Department is particularly interested in 
comments which evaluate the accuracy of the agency's estimate of the 
burden of the proposed collection of information including the basis 
for any suggested alternative burden estimates. 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 25, 1998.
    The Department of Labor is particularly interested in comments 
which:
    <bullet> Evalute 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, D.C. 20210. 
Telephone: (202) 219-4782 (this is not a toll-free number).
SUPPLEMENTARY INFORMATION:

I. Background

    Section 408(a) of ERISA provides that the Secretary may grant 
exemptions from the prohibited transaction provisions of sections 406 
and 407(a) of ERISA and directs the Secretary to establish an exemption 
procedure with respect to such provisions. In this regard, the 
Department previously issued a regulation which describes the 
procedures that must be followed in filing for such exemptions (29 CFR 
2570.30. et seq.). Under section 408(a) of ERISA, in order for the 
Secretary to grant an exemption, it must be determined that such 
exemption is ``(1) administratively feasible; (2) in the interests of 
the plan and its participants and beneficiaries; and (3) protective of 
the rights of participants and beneficiaries.'' In order to make such 
determination, the Department requires full information regarding all 
aspects of the transaction, including the specific circumstances 
surrounding the transaction, and the parties and assets involved. Thus, 
sections 2570.34 and 2570.35 of the exemption procedures regulation 
lists the information that must be supplied by the applicant. This 
information includes: identifying information (name, type of plan, EIN 
number, etc.); an estimate of the number of plan participants; a 
detailed description of the transaction and the parties for which an 
exemption is

[[Page 34936]]

requested; statements regarding what section ERISA is thought to be in 
violation and whether the transaction(s) involved have already been 
entered into; a statement of whether the transaction is customary in 
the industry; a statement of the hardship or economic loss, if any, 
which would result if the exemption were denied; a statement explaining 
why the proposed exemption would be administratively feasible, in the 
interests of the plan and protective of the rights of plan participants 
and beneficiaries; and several other statements. In addition, the 
applicant must certify that the information supplied is accurate and 
complete.
    Section 408(a) of ERISA requires that before granting an exemption 
from 406(a) the Secretary ``shall require that adequate notice be given 
to interested parties, and shall afford interested persons opportunity 
to present views.'' Thus, section 2570.43 of the exemption procedures 
regulation requires that the applicant for an exemption provide 
interested persons with a copy of the Federal Register notice 
containing the proposed exemption and a statement which informs them of 
their right to comment on the proposed exemption.

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 the requirement that an applicant for an 
exemption disclose information regarding their application is necessary 
in order for the Department to make an informed decision regarding the 
application. Further, the requirement of the notice to interested 
parties ensures that participants and beneficiaries are informed of the 
application for exemption and have the opportunity to respond.
    Agency: Department of Labor, Pension and Welfare Benefits 
Administration.
    Title: Procedure for Application for Prohibited Transaction 
Exemption Regulation pursuant to 29 CFR 2570.30, et seq.
    Type of Review: Extension of a currently approved collection.
    OMB Numbers: 1210-0060.
    Affected Public: Individuals or households; Business or other for-
profit; Not-for-profit institutions.
    Total Respondents: 207.
    Total Responses: 207.
    Frequency of Response: On occasion.
    Total Annual Burden: 5,708 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 22, 1998.
Gerald B. Lindrew,
Deputy Director, Pension and Welfare Benefits Administration, Office of 
Policy and Research.
[FR Doc. 98-17103 Filed 6-25-98; 8:45 am]
BILLING CODE 4510-29-M