[Federal Register Volume 63, Number 125 (Tuesday, June 30, 1998)]
[Notices]
[Pages 35612-35613]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-17344]


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DEPARTMENT OF LABOR

Pension and Welfare Benefits Administration


Proposed Information Collection Request Submitted for Public 
Comment and Recommendations; Prohibited Transaction Class Exemption 92-
6

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 92-6. 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 31, 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 clarify 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, DC 
20210, (202) 219-4782 (this is not a toll-free number), FAX (202) 219-
4745.

SUPPLEMENTARY INFORMATION:

I. Background

    Prohibited Transaction Class Exemption 92-6 exempts from the 
prohibited transaction restrictions of the Employee Retirement Income 
Security Act the sale of individual life insurance or annuity contracts 
by a plan to participants, relatives of participants, employers any of 
whose employees are covered by the plan, other employee benefit plans, 
owner-employees or shareholder-employees. In the absence of this 
exemption, certain aspects of these transactions might be prohibited by 
section 406 of the Employee Retirement Income Security Act.

II. Current Actions

    This existing collection of information should be continued because 
without the relief provided by this exemption, certain aspects of these 
transactions might be prohibited by the Employee Retirement Income 
Security Act. The recordkeeping requirements incorporated within the 
class exemption are intended to protect the interests of plan 
participants and beneficiaries. The exemption requires the pension plan 
to inform the insured participant of a proposed sale of a life 
insurance or annuity policy to the employer, a relative, another plan, 
an owner-employee, or a shareholder-employee. If the participant elects 
not to purchase the contract, the relative, the employer, another plan, 
the owner-employee or the shareholder-employee may purchase the 
contract from the plan upon receipt by the plan of written consent of 
the participant. The disclosure

[[Page 35613]]

requirements of the exemption do not apply if the contract is sold to 
the plan participants. The disclosure requirements incorporated within 
the exemption are intended to protect the rights of plan participants 
by (1) putting them on notice of the plan's intention to sell insurance 
or annuity contracts under which they are insured and (2) giving them 
the right of first refusal to purchase such contracts.
    Type of Review: Extension.
    Agency: Pension and Welfare Benefits Administration.
    Title: Prohibited Transaction Class Exemption 92-6.
    OMB Number: 1210-0063.
    Recordkeeping: 6 years.
    Affected Public: Business or other for-profit, Not-for-profit 
institutions, Individuals.
    Total Respondents: 7,960.
    Frequency: On occasion.
    Total Responses: 7,960.
    Average Time Per Response: 10 minutes.
    Estimated Total Burden Hours: 1,327.
    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 public record.

    Dated: June 25, 1998.
Gerald B. Lindrew,
Deputy Director, Office of Policy and Research, Pension and Welfare 
Benefits Administration.
[FR Doc. 98-17344 Filed 6-29-98; 8:45 am]
BILLING CODE 4510-29-M