[Federal Register: December 2, 2004 (Volume 69, Number 231)]
[Notices]
[Page 70156-70157]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02de04-76]
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DEPARTMENT OF LABOR
Employee Benefits Security Administration
Proposed Extension of Information Collection Request Submitted
for Public Comment and Recommendations; Alternative Method of
Compliance for Certain SEPs Pursuant to 29 CFR 2520.104-49
AGENCY: Employee Benefits Security Administration, Department of Labor.
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 preclearance
consultation program to provide the general public and 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). 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
[[Page 70157]]
requirements on respondents can be properly assessed. Currently, the
Employee Benefits Security Administration is soliciting comments on the
proposed extension of the collection of information included in the
alternative method of compliance for certain simplified employee
pensions regulation (29 CFR 2520.104-49).
A copy of the information collection request (ICR) can be obtained
by contacting the individual shown in the ADDRESSES section of this
notice.
DATES: Written comments must be submitted to the office shown in the
ADDRESSES section on or before January 31, 2005.
ADDRESSES: Gerald B. Lindrew, Department of Labor, Employee Benefits
Security Administration, 200 Constitution Avenue, NW., Washington, DC
20210, (202) 693-8410, FAX (202) 693-4745 (these are not toll-free
numbers).
SUPPLEMENTARY INFORMATION:
I. Background
Section 110 of the Employment Retirement Income Security Act
(ERISA) authorizes the Secretary to prescribe alternative methods of
compliance with the reporting and disclosure requirements of Title I of
ERISA for pension plans. Simplified employee pensions (SEPs) are
established in section 408(k) of the Internal Revenue Code (Code).
Although SEPs are primarily a development of the Code and subject to
its requirements, SEPs are also pension plans subject to the reporting
and disclosure requirements of Title I of ERISA.
The Department previously issued a regulation under the authority
of section 110 of ERISA (29 CFR 2520.104-49) that intended to relieve
sponsors of certain SEPs from ERISA's Title I reporting and disclosure
requirements by prescribing an alternative method of compliance. These
SEPs are, for purposes of this Notice, referred to as ``non-model''
SEPs because they exclude (1) those SEPs which are created through use
of Internal Revenue Service (IRS) Form 5305-SEP, and (2) those SEPs in
which the employer limits or influences the employees' choice to IRAs
into which employers' contributions will be made and on which
participant withdrawals are prohibited. The disclosure requirements in
this regulation were developed in conjunction with the Internal Revenue
Service (IRS Notice 81-1). Accordingly, sponsors of ``non-model'' SEPs
that satisfy the limited disclosure requirements of the regulation are
relieved from otherwise applicable reporting and disclosure
requirements under Title I of ERISA, including the requirements to file
annual reports (Form 5500 Series) with the Department, and to furnish
summary plan descriptions and summary annual reports to participants
and beneficiaries.
This ICR includes four separate disclosure requirements. First, at
the time an employee becomes eligible to participate in the SEP, the
administrator of the SEP must furnish the employee in writing specific
and general information concerning the SEP; a statement on rates,
transfers and withdrawals; and a statement on tax treatment. Second,
the administrator of the SEP must furnish participants with information
concerning any amendments. Third, the administrator must notify
participants of any employer contributions made to the IRA. Fourth, in
the case of a SEP that provides integration with Social Security, the
administrator shall provide participants with statement on Social
Security taxes and the integration formula used by the employer.
II. Review Focus
The Department of Labor (Department) 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; and
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.
III. Current Actions
The Office of Management and Budget's (OMB) approval of this ICR
will expire on February 28, 2005. The ICR should be continued because
the alternative disclosure arrangement provided through this regulation
relieves sponsors of ``non-model'' SEPs of most of the reporting and
disclosure requirements under Title I of ERISA. Additionally, the
disclosure requirements set forth in this regulation, insure that
administrators of ``non-model'' SEPs provide participants with specific
written information concerning SEPs. After considering comments
received in response to this notice, the Department intends to submit
the ICR to OMB for continuing approval. No change to the existing ICR
is proposed or made at this time.
Agency: Employee Benefits Security Administration, Department of
Labor.
Title: Alternative Method of Compliance for Certain SEPs pursuant
to 29 CFR 2520.104-49.
Type of Review: Extension of a currently approved collection of
information.
OMB Number: 1210-0034.
Affected Public: Individuals or households; business or other for-
profit; not-for-profit institutions.
Respondents: 460.
Responses: 20,700.
Frequency of Response: On occasion.
Average Response Time: 35 minutes.
Estimated Total Burden Hours: 2,000.
Total Burden Cost (operating/maintenance): $7,900.
Dated: November 24, 2004.
Gerald B. Lindrew,
Deputy Director, Office of Policy and Research, Employee Benefits
Security Administration.
[FR Doc. 04-26545 Filed 12-1-04; 8:45 am]
BILLING CODE 4510-29-P