33960 Federal Register / Vol. 63, No. 119 / Monday, June 22, 1998 / Notices

DEPARTMENT OF LABOR

Pension and Welfare Benefits

Administration

Proposed Extension of Information

Collection Request Submitted for

Public Comment and

Recommendations

ACTION: Notice.

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 by

properly assessed. Currently, the

Pension and Welfare Benefits

Administration is soliciting comments

concerning the proposed extension of

the collection of information included

in the suspension of pension benefits

regulation issued pursuant to the

authority of section 203(a)(3)(B) of the

Employee Retirement Income Security

Act of 1974 (ERISA) which governs the

circumstances under which pension

plans may suspend pension benefits

payments to retirees that return to work,

or of participants that continue to work

beyond normal retirement age (29 CFR

2530.203–3). 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

ADDRESSES section of this notice.

DATES: Written comments must be

submitted to the office listed in the

ADDRESSES section below on or before

August 21, 1998.

The Department of Labor is

particularly interested in comments

which:

• 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;

• 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;

• Enhance the quality, utility, and

clarity of the information to be

collected;

• 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:

1. Background

Section 203(a)(3)(B) of ERISA governs

the circumstances under which pension

plans may suspend pension benefit

payments to retirees that return to work

or to participants that continue to work

beyond normal retirement age.

Furthermore, section 203(a)(3)(B) of

ERISA authorizes the Secretary to

prescribe regulations necessary to carry

out the provisions of this section.

In this regard, the Department

previously issued a regulation which

described the circumstances and

conditions under which plans may

suspend the pension benefits of retirees

that return to work, or of participants

that continue to work beyond normal

retirement age (29 CFR 2530.203–3). In

order for a plan to suspend benefits

pursuant to the regulation, it must

notify affected retirees or participants

(by first class mail or personal delivery)

during the first calendar month or

payroll period in which the plan

withholds payment, that benefits are

suspended. This notice must include

the specific reasons for such

suspension, a general description of the

plan provisions authorizing the

suspension, a copy of the relevant plan

provisions, and a statement indicating

where the applicable regulations may be

found, i.e. 29 CFR 2530.203–3. In

addition, the suspension notification

must inform the retiree or participant of

the plan’s procedure for affording a

review of the suspension of benefits.

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

retirees or participants be notified in the

event of suspension of benefits is

intended to protect their nonforfeitable

right to their normal retirement benefits.

By informing retirees or participants of

the reasons for the suspension, the

authority for the suspension, and the

plan’s procedure for review of a

suspension of benefits, retirees or

participants are informed of the status of

their pension benefits and are able to

raise with the plan facts or issues which

may be relevant to determining whether

a suspension of benefits is proper under

the circumstances.

Agency: Department of Labor, Pension

and Welfare Benefits Administration.

Title: Suspension of Benefits

Regulation pursuant to 29 CFR

§ 2530.203–3.

Type of Review: Extension of a

currently approved collection.

OMB Numbers: 1210–0048.

Affected Public: Indivdiuals of

households; Business or other for-profit;

Not-for-profit institutions.

Total Respondents: 57,374.

Total Responses: 57,374.

Frequency of Response: On occasion.

Total Annual Burden: 14,343.5 hours.

Comments submitted in response to

this comment request will be summarize

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 17, 1998.

Gerald B. Lindrew,

Deputy Director, Pension and Welfare

Benefits Administration, Office of Policy and

Research.

[FR Doc. 98–16554 Filed 6–19–98; 8:45 am]

BILLING CODE 4510–29–M

DEPARTMENT OF LABOR

Pension and Welfare Benefits

Administration

Proposed Extension of Information

Collection Request Submitted for

Public Comment and

Recommendations

ACTION: Notice.

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
Federal Register / Vol. 63, No. 119 / Monday, June 22, 1998 / Notices 33961

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 a

currently approved collection of

information, Class Exemption 77–4 for

certain transactions between investment

companies and employee benefit plans.

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 comments must be

submitted to the office listed in the

ADDRESSES section below on or before

August 21, 1998. The Department of

Labor is particularly interested in

comments which:

• 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;

• 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;

• Enhance the quality, utility, and

clarity of the information to be

collected;

• 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

Prohibited Transaction Class

Exemption 77–4 permits the purchase

and sale by an employee benefit plan of

shares of a registered, open-end

investment company (mutual fund)

when a fiduciary with respect to the

plan (e.g., investment manager) is also

the investment advisor for the

investment company. 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 relief

provided by this exemption, an openend mutual fund could not sell shares

to or purchase shares from a plan when

the fiduciary with respect to the plan is

also the investment advisor for the

mutual fund. As a result, plans would

be compelled to liquidate their existing

investments involving such transactions

and establish new investment structures

and policies, and amend their plan

documents.

In order to insure that the exemption

is not abused and that the rights of

participants and beneficiaries are

protected, the Department has included

in the exemption two basic disclosure

requirements. The first is intended to

put the plan on notice of possible fees

associated with the redemption of openend mutual fund shares. It requires

disclosure of any redemption fees in the

current prospectus of the open-end

mutual fund (the prospectus in effect at

the time of the plan’s acquisition or

disposal of such shares). The second

requires at the time of the purchase or

sale of such mutual fund shares that the

plan’s independent fiduciary receive a

copy of the current prospectus issued by

the open-end mutual fund and a full

and detailed written statement of the

investment advisory fees charged to or

paid by the plan and the open-end

mutual fund to the investment advisor.

Agency: Department of Labor, Pension

and Welfare Benefits Administration.

Title: Class Exemption 77–4 for

Certain Transactions Between

Investment Companies and Employee

Benefit Plans.

Type of Review: Extension of a

currently approved collection.

OMB Numbers: 1210–0049.

Affected Public: Individuals or

households; Business or other for-profit;

Not-for-profit institutions.

Total Respondents: 624.

Total Responses: 46,800.

Frequency of Response: On occasion.

Total Annual Burden: 4,212 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 17, 1998.

Gerald B. Lindrew,

Deputy Director, Pension and Welfare

Benefits Administration, Office of Policy and

Research.

[FR Doc. 98–16555 Filed 6–19–98; 8:45 am]

BILLING CODE 4510–29–M

DEPARTMENT OF LABOR

Pension and Welfare Benefits

Administration

Working Group Studying Retirement

Plan Leakage—Cashing in Your Future

From ERISA Employer-Sponsored

Pension Plans Advisory Council on

Employee Welfare and Pension

Benefits Plans; Notice of Meeting

Pursuant to the authority contained in

Section 512 of the Employee Retirement

Income Security Act of 1974 (ERISA), 29

U.S.C. 1142, a public meeting will be

held on Wednesday, July 8, 1998, of the

Retirement Plan Leakage—Cashing in

Your Future—Working Group of the

Advisory Council on Employee Welfare

and Pension Benefit Plans. The group is

studying pre-retirement distributions,

including in-service distributions,

hardship loans and participant loans

from ERISA employer-sponsored

pension plans. The purpose of the open meeting,

which will run from 9:30 a.m. to

approximately noon in Room N–4437

C&D, U.S. Department of Labor

Building, Second and Constitution

Avenue NW, Washington, D.C. 20210, is

for Working Group members to continue

gathering statistical information and/or

to take additional testimony on the

import of these ‘‘pension preservation’’

issues.

Members of the public are encouraged

to file a written statement pertaining to

the topic by submitting 20 copies on or

before July 2, 1998, to Sharon Morrissey,

Executive Secretary, ERISA Advisory

Council, U.S. Department of Labor,

Room N–5677, 200 Constitution

Avenue, NW, Washington, D.C. 20210.

Individuals or representatives of

organizations wishing to address the

Working Group should forward their

request to the Executive Secretary or

telephone (202) 219–8753. Oral

presentations will be limited to 10

minutes, but an extended statement may