[Federal Register Volume 63, Number 122 (Thursday, June 25, 1998)]
[Notices]
[Pages 34664-34665]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-16936]
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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 preclerance
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
[[Page 34665]]
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 for 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 must be submitted to the office listed in ADDRESSES
section below on or before August 24, 1998. The Department of Labor is
particularly interested in comments which:
Evalaute 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-56457, Washington, D.C. 20210.
Telephone: (202) 219-4782 (this is not a toll-free number).
SUPPLEMENTARY INFORMATION:
I. Background
Prohibited Transaction Class Exemption 81-8 permits the investment
of plan assets which involve the purchase or other acquisition,
holding, sale, exchange or redemption by or on behalf of an employee
benefit plan of certain types of short-term investments. These include
investments in banker's acceptances, commercial paper, repurchase
agreements, certificates of deposit, and bank securities. 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 relieve provided by this
exemption, plans would not be able to continue to invest plan assets 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. In most instances, the service providers
engaging in such transactions with the plans are already providing
services to the plan. Without this exemption, these types of
transactions could not continue, causing disruption of the existing
business practices of the plan and the businesses that service them.
In order to ensure that the exemption is not abused, that the
rights of participants and beneficiaries are protected, and that the
exemption's conditions are being complied with, 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 requirement calls for the repurchase agreements
between the seller and the plan to be in writing. These repurchase
agreements cover a period of one year or less and may be in the form of
a blanket agreement for one year. 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 the statements
are issued. The seller must also represent, either in the repurchase
agreement or prior to each repurchase agreement transaction, that as of
the time the transaction is negotiated, there has been no material
adverse change in the seller's financial condition since the date the
most recent financial statement was furnished that has not been
disclosed to the plan fiduciary with whom the written agreement is
made. This requirement may be met by the seller stating in the
repurchase agreement that by making the sale they are representing that
there is no material or adverse change their financial condition.
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.
OMB Number: 1210-0061.
Affected Public: Individuals or households; Business or other for-
profit; Not-for-profit institutions.
Total Respondents: 18,245.
Total Responses: 91,225.
Frequency of Response: On occasion.
Total Annual Burden: 15,204 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 19, 1998.
Gerald B. Lindrew,
Deputy Director, Pension and Welfare Benefits Administration, Office of
Policy and Research.
[FR Doc. 98-16936 Filed 6-24-98; 8:45 am]
BILLING CODE 4570-29-M
