Federal Register / Vol. 74, No. 53 / Friday, March 20, 2009 / Rules and Regulations 11847 

■ 54. On page 79354, column 1, 

paragraph (b)(4), Example 9 (i), the 

fourteenth sentence, the language 

‘‘Under the facts and circumstances of 

the business, the activities of the 

remainder of FS and Branch A, if 

considered together, would not provide 

a demonstrably greater contribution to 

the manufacture of Product X than the 

activities of Branch B.’’ is corrected to 

read ‘‘Under the facts and circumstances 

of the business, the activities of the 

remainder of FS and Branch A, if 

considered together, would not provide 

a demonstrably greater contribution to 

the manufacture of Product X than the 

activities of Branch B and Branch C, if 

considered together.’’. 

■ 55. On page 79354, columns 1 and 2, 

paragraph (b)(4), Example 9 (ii), the 

second sentence, the language ‘‘The 

remainder of FS, Branch A, and Branch 

B each provide a contribution through 

the activities of employees to the 

manufacture of Product X.’’ is corrected 

to read ‘‘The remainder of FS, Branch A, 

Branch B, and Branch C each provide a 

contribution through the activities of 

employees to the manufacture of 

Product X.’’. 

■ 56. On page 79354, column 2, 

paragraph (b)(4), Example 9 (ii), the 

fourth sentence, the language ‘‘The 

tested sales location is Country M 

because the remainder of FS performs 

the selling activities with respect to 

Product X.’’ is corrected to read ‘‘The 

tested sales location is Country M 

because the selling activities with 

respect to Product X are carried on by 

the remainder of FS.’’. 

■ 57. On page 79354, column 2, 

paragraph (b)(4), Example 9 (ii), the fifth 

sentence, the language ‘‘The location of 

Branch B is the tested manufacturing 

location because the effective rate of tax 

imposed on FS’s sales income by 

Country M (10%) is less than 90% of, 

and at least 5 percentage points less 

than, the effective rate of tax that would 

apply to such income in Country B 

(24%): and Branch B is the only 

manufacturing branch that would, after 

applying § 1.954–3(b)(1)(ii)(b), be 

treated as a separate corporation.’’ is 

corrected to read ‘‘The location of 

Branch B is the tested manufacturing 

location because the effective rate of tax 

imposed on FS’s sales income by 

Country M (10%) is less than 90% of, 

and at least 5 percentage points less 

than the effective rate of tax that would 

apply to such income in Country B 

(24%), and Country B has the lowest 

effective rate of tax among the 

manufacturing branches that would, 

after applying § 1.954–3(b)(1)(ii)(b), be 

treated as a separate corporation.’’. 

■ 58. On page 79354, column 2, 

paragraph (b)(4), Example 9 (ii), line 

nineteen from the top of the column, the 

language ‘‘Country A will be included 

in the’’ is corrected to read ‘‘Country A 

by Branch A, will be included in the’’. 

■ 59. On page 79354, column 2, 

paragraph (b)(4), Example 9 (ii), a new 

sentence is added between the sixth and 

seventh sentences to read ‘‘The 

manufacturing activities performed in 

Country C by Branch C will be included 

in the contribution of Branch B for 

purposes of determining the location of 

manufacture of Product X because the 

effective rate of tax imposed on the sales 

income by Country M (10%) is less than 

90% of, and at least 5 percentage points 

less than, the effective rate of tax that 

would apply to such income in Country 

C (25%).’’. 

■ 60. On page 79354, column 2, 

paragraph (b)(4), Example 9 (ii), the 

seventh sentence, the language ‘‘Under 

the facts and circumstances of the 

business, the manufacturing activities of 

the remainder of FS and Branch A, 

considered together, would not provide 

a demonstrably greater contribution to 

the manufacture of Product X than the 

activities of Branch B.’’ is corrected to 

read ‘‘Under the facts and circumstances 

of the business, the manufacturing 

activities of the remainder of FS and 

Branch A, considered together, would 

not provide a demonstrably greater 

contribution to the manufacture of 

Product X than the activities of Branch 

B and Branch C, considered together.’’ 

Guy R. Traynor, 

Federal Register Liaison, Publications & 

Regulations Br., Associate Chief Counsel, 

Procedure & Administration. 

[FR Doc. E9–5894 Filed 3–19–09; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF LABOR 

Employee Benefits Security 

Administration 

29 CFR Part 2550 

RIN 1210–AB13 

Investment Advice—Participants and 

Beneficiaries 

AGENCY: Employee Benefits Security 

Administration, Labor. 

ACTION: Final rule; delay of effective 

date and applicability date. 

SUMMARY: This document delays the 

effective and applicability dates of final 

rules under the Employee Retirement 

Income Security Act, and parallel 

provisions of the Internal Revenue Code 

of 1986, relating to the provision of 

investment advice to participants and 

beneficiaries in individual account 

plans, such as 401(k) plans, and 

beneficiaries of individual retirement 

accounts (and certain similar plans). 

These rules were published in the 

Federal Register on January 21, 2009. 

This document postpones the effective 

and applicability dates of these final 

rules from March 23, 2009 until May 22, 

2009, to allow additional time for the 

Department to evaluate questions of law 

and policy concerning the rules. 

DATES: The effective and applicability 

date of the rule amending 29 CFR part 

2550, published January 21, 2009, at 74 

FR 3822, is delayed until May 22, 2009. 

FOR FURTHER INFORMATION CONTACT: Fred 

Wong, Office of Regulations and 

Interpretations, Employee Benefits 

Security Administration (EBSA), (202) 

693–8500. This is not a toll-free number. 

SUPPLEMENTARY INFORMATION: 

A. Background 

On January 21, 2009, the Department 

of Labor published final rules on the 

provision of investment advice to 

participants and beneficiaries of 

participant-directed individual account 

plans and to beneficiaries of individual 

retirement accounts (74 FR 3822). The 

rules contain regulations implementing 

a statutory prohibited transaction 

exemption under ERISA Sec. 408(b)(14) 

and Sec. 408(g) and an administrative 

class exemption granting additional 

relief. As published, these rules were to 

be effective on March 23, 2009. 

Paragraph (g) of Sec. 2550.408g–1 

provided that the rule would apply to 

covered transactions occurring on or 

after March 23, 2009. 

By memorandum dated January 20, 

2009, Rahm Emanuel, Assistant to the 

President and Chief of Staff, directed 

Agency Heads to consider extending for 

60 days the effective date of regulations 

that have been published in the Federal 

Register but not yet taken effect. The 

memorandum further advised that, 

where such regulations are extended, 

agencies should allow 30 days for 

interested persons to comment on issues 

of law and policy raised by the rules. In 

accordance with that memorandum, and 

taking into account the considerations 

listed in the Memorandum of January 

21, 2009, from Peter R. Orszag, Director 

of the Office of Management and 

Budget, the Department published in 

the Federal Register on February 4, 

2009, a document seeking comment on 

a proposed 60 day extension to the 

effective dates for these rules until May 

22, 2009, and a proposed conforming 

amendment to the applicability date of 

11848 Federal Register / Vol. 74, No. 53 / Friday, March 20, 2009 / Rules and Regulations 

1These comments are available on the 

Department’s Web site at: http://www.dol.gov/ebsa/ 

regs/cmt-investmentadvicefinalrule.html. 

Sec. 2550.408g–1. The document also 

requested comment on issues of law and 

policy raised by the final rules. The 

comment period on the proposed 

extension ended on February 18, 2009. 

The comment period on issues of law 

and policy concerning the final rules 

ended on March 6, 2009. 

For the reasons discussed below, the 

Department has decided to postpone, for 

60 days, the effective and applicability 

dates of the final rules published on 

January 21, 2009, until May 22, 2009, 

for agency review of questions of law 

and policy. 

B. Comments Received and the 

Department’s Decision 

In response to its request, the 

Department received 26 comment 

letters.1 A number of commenters 

expressed the view that the final rules 

raise significant issues of law and policy 

that should be further reviewed by the 

Department. In particular, these 

comments raised questions as to the 

scope of the final rules’ administrative 

class exemption, and expressed 

disagreement with the interpretation of 

the statutory exemption’s conditions 

contained within the final rules. Other 

commenters, however, expressed the 

view that the conditions of the final 

rules would be adequate to safeguard 

the interests of plan participants and 

beneficiaries, and opposed a delay of 

the final rules’ effective and 

applicability dates, noting increased 

participant interest in investment advice 

in response to the current economic 

environment. 

After consideration of the comments, 

the Department has concluded that the 

legal and policy issues raised by 

commenters are sufficiently significant 

to justify delaying the March 23 

effective and applicability dates of the 

final rule in order to afford the 

Department an opportunity to review 

those issues. Accordingly, the 

Department is adopting herein the 

proposed 60 day delay of the effective 

and applicability date of the final rule. 

With the adoption of this delay, the 

effective and applicability dates of the 

final rule will be May 22, 2009. 

List of Subjects in 29 CFR Part 2550 

Employee benefit plans, Exemptions, 

Fiduciaries, Investments, Pensions, 

Prohibited transactions, Reporting and 

recordkeeping requirements, and 

Securities. 

■ For the reasons set forth above, the 

publication on January 21, 2009 (74 FR 

3822), of the final rule amending 29 CFR 

part 2550, is further amended as 

follows: 

PART 2550—RULES AND 

REGULATIONS FOR FIDUCIARY 

RESPONSIBILITY 

■ 1. The authority citation for part 2550 

is revised to read as follows: 

Authority: 29 U.S.C. 1135; and Secretary of 

Labor’s Order No. 1–2003, 68 FR 5374 (Feb. 

3, 2003). Sec. 2550.401b–1 also issued under 

sec. 102, Reorganization Plan No. 4 of 1978, 

43 FR 47713 (Oct. 17, 1978), 3 CFR, 1978 

Comp. 332, effective Dec. 31, 1978, 44 FR 

1065 (Jan. 3, 1978), 3 CFR, 1978 Comp. 332. 

Sec. 2550.401c–1 also issued under 29 U.S.C. 

1101. Sections 2550.404c–1 and 2550.404c– 

5 also issued under 29 U.S.C. 1104. Sec. 

2550.407c–3 also issued under 29 U.S.C. 

1107. Sec. 2550.404a–2 also issued under 26 

U.S.C. 401 note (sec. 657, Pub. L. 107–16, 115 

Stat. 38). Sec. 2550.408b–1 also issued under 

29 U.S.C. 1108(b)(1) and sec. 102, 

Reorganization Plan No. 4 of 1978, 3 CFR, 

1978 Comp. p. 332, effective Dec. 31, 1978, 

44 FR 1065 (Jan. 3, 1978), and 3 CFR, 1978 

Comp. 332. Sec. 2550.408b–19 also issued 

under sec. 611, Public Law 109–280, 120 

Stat. 780, 972, and sec. 102, Reorganization 

Plan No. 4 of 1978, 3 CFR, 1978 Comp. p. 

332, effective Dec. 31, 1978, 44 FR 1065 (Jan. 

3, 1978), and 3 CFR, 1978 Comp. 332. Sec. 

2550.408g–1 also issued under sec. 102, 

Reorganization Plan No. 4 of 1978, 3 CFR, 

1978 Comp. p. 332, effective Dec. 31, 1978, 

44 FR 1065 (Jan. 3, 1978), and 3 CFR, 1978 

Comp. 332. Sec. 2550.408g–2 also issued 

under 29 U.S.C. 1108(g) and sec. 102, 

Reorganization Plan No. 4 of 1978, 3 CFR, 

1978 Comp. p. 332, effective Dec. 31, 1978, 

44 FR 1065 (Jan. 3, 1978), and 3 CFR, 1978 

Comp. 332. Sec. 2550.412–1 also issued 

under 29 U.S.C. 1112. 

§ 2550.408g–1 [Amended] 

■ 2. Section 2550.408g–1 is amended by 

removing the date ‘‘March 23, 2009’’ 

and adding in its place ‘‘May 22, 2009’’ 

in paragraph (g). 

Signed at Washington, DC, this 17th day of 

March 2009. 

Alan D. Lebowitz, 

Deputy Assistant Secretary for Program 

Operations, Employee Benefits Security 

Administration, Department of Labor. 

[FR Doc. E9–6210 Filed 3–19–09; 8:45 am] 

BILLING CODE 4510–29–P 

POSTAL SERVICE 

39 CFR Part 20 

International Product and Price 

Changes; Correction 

AGENCY: Postal ServiceTM. 

ACTION: Final rule; correction. 

SUMMARY: The Postal Service published 

in the Federal Register of February 25, 

2009, a document concerning 

international product and price changes 

for implementation in May 2009. 

Inadvertently, Exhibit 293.452 included 

in that document, did not include all 

destination countries. This document 

corrects the table. 

DATES: This correction is effective May 

11, 2009. We will implement this 

international price change concurrent 

with our domestic Mailing Services 

price change on May 11, 2009. 

FOR FURTHER INFORMATION CONTACT: 

Obataiye B. Akinwole at 703–292-5260 

or Rick Klutts at 813–877–0372. 

SUPPLEMENTARY INFORMATION: The Postal 

Service published a document in the 

Federal Register on February 25, 2009 

(74 FR 8473), amending sub-section 293 

of the International Mail Manual 

(IMM®). In FR Doc. 36–8473, published 

in the Federal Register of February 25, 

2009 (74 FR 8473), sub-section 293.452 

was inadvertently published without a 

complete list of ISAL destination 

countries. This amendment corrects 

Exhibit 293.452 published on February 

25, 2009. 

In rule FR Doc. 36–8473 published on 

February 25, 2009 (74 FR 8473), make 

the following correction. On pages 8485 

and 8486, remove the current Exhibit 

293.452 and insert the following exhibit. 

Exhibit 293.452 

ISAL Country Price Groups and 

Foreign Exchange Offices