Federal Register / Vol. 66, No. 124 / Wednesday, June 27, 2001 / Notices 34269

Dated: June 18, 2001.

Margaret J. Sherrill,

Chief, Branch of Management Review and

Internal Control, Division of Financial

Management, Office of Management,

Administration and Planning, Employment

Standards Administration.

[FR Doc. 01–16149 Filed 6–26–01; 8:45 am]

BILLING CODE 4510–27–P

DEPARTMENT OF LABOR

Pension and Welfare Benefits

Administration

Proposed Extension of Information

Collection Request Submitted for

Public Comment and

Recommendations, Prohibited

Transaction Class Exemption 81–8

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 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 81–8 on

investment of plan assets in certain

types of short-term investments. 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 on or before August 27, 2001.

ADDRESSES: Mr. Gerald B. Linndrew,

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; Fax (202)

219–4745. These are not toll-free

numbers.

SUPPLEMENTARY INFORMATION:

I. Background

Prohibited Transaction Class

Exemption 81–8 permits the investment

of plan assets that involve the purchase

or other acquisition, holding, sale,

exchange or redemption by or on behalf

of an employee benefit plan in certain

types of short-term investments. These

include investments in banker’s

acceptances, commercial paper,

repurchase agreements, certificates of

deposit, and bank securities. Absent the

exemption, certain aspects of these

transactions might be prohibited by

section 406 of the Employee Retirement

Income Security Act (ERISA).

II. Desired Focus of Comments

The Department of Labor is

particularly interested in comments

that:

• 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.

III. Current Actions

Provided that the requirements of the

exemption are met, the exemption

allows plans to invest in certain short

term investments in debt obligations

issued by certain persons who provide

services to the plan or who are affiliated

with such service providers that

otherwise might be prohibited under

sections 406 and 407(a) ERISA. Without

this exemption, these types of short

term transactions might not be

permitted.

In order to ensure that the exemptions

is not abused, that the rights of

participants and beneficiaries are

protected, and that the conditions of the

exemption have been satisfied, the

Department has included in the

exemption two basic disclosure

requirements. Both affect only the

portion of the exemption dealing with

repurchase agreements. The first

requirements calls for the repurchase

agreements between the seller and the

plan to be in writing. The second

requirement obliges the seller of such

repurchase agreements to agree to

provide financial statements to the plan

at the time of the sale and as future

statements are issued. The seller must

also represent, either in the repurchase

agreement or prior to the negotiation of

each repurchase agreement transaction,

that there has been no material adverse

change in the seller’s financial

condition since the date that the most

recent financial statement was furnished

which has not been disclosed to the

plan fiduciary with whom the written

agreement is made.

Without the recording and disclosure

requirement included in the JCR,

participants and beneficiaries of a plan

would not be protected in their

investments, the Department would be

unable to monitor a plan’s activities for

compliance, and plans would be at a

disadvantage in assessing the value of

certain short-term investment activities.

Agency: Department of Labor, Pension

and Welfare Benefits Administration.

Title: Prohibited Transaction Class

Exemption 81–8 for Investment of Plan

Assets in Certain Types of Short-Term

Investments.

Type of Review: Extension of

currently approved collection of

information.

OMB Number: 1210–0061.

Affected Public: Individuals or

households; Business or other for-profit;

Not-for-profit institutions.

Total Respondents: 38,237.

Total Responses: 191,185.

Frequency of Response: On occasion.

Estimated Burden Hours: 31,900.

Estimated Burden Costs: $6,500.

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 21, 2001.

Gerald B. Lindrew,

Deputy Director, Pension and Welfare

Benefits Administration, Office of Policy and

Research.

[FR Doc. 01–16078 Filed 6–26–01; 8:45 am]

BILLING CODE 4510–29–M