[Federal Register: December 2, 2004 (Volume 69, Number 231)]
[Notices]
[Page 70157-70158]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02de04-77]
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DEPARTMENT OF LABOR
Employee Benefits Security Administration
Proposed Extension of Information Collection Request Submitted
for Public Comment and Recommendations; Prohibited Transaction Class
Exemption 98-54--Foreign Exchange Transactions Executed Pursuant to
Standing Instructions
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,
[[Page 70158]]
collection instruments are clearly understood, and the impact of
collection requirements on respondents can be properly assessed.
Currently, the Employee Benefits Security Administration is soliciting
comments on the proposed extension of the information collection
provisions of Prohibited Transaction Exemption 98-54 (PTE 98-54).
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
PTE 98-54 permits certain foreign exchange transactions between
employee benefit plans and certain banks, broker-dealers, and domestic
affiliates thereof, which are parties in interest with respect to such
plans, pursuant to standing instructions. In the absence of an
exemption, foreign exchange transactions pursuant to standing
instructions would be prohibited under circumstances where the bank or
broker-dealer is a party in interest or disqualified person with
respect to the plan under the Employee Retirement Income Securities Act
(ERISA) or the Internal Revenue Code (Code).
The class exemption has five basic information collection
requirements. The first requires the bank or broker-dealer to maintain
written policies and procedures for handling foreign exchange
transactions for plans for which it is a party in interest which ensure
that the party acting for the bank or broker-dealer knows it is dealing
with a plan. The second requires that the transactions are performed in
accordance with a written authorization executed in advance by an
independent fiduciary of the plan. The third requires that the bank or
broker-dealer provides the authorizing fiduciary with a copy of its
written policies and procedures for foreign exchange transactions
involving income item conversions and de minimis purchase and sale
transactions prior to the execution of a transaction. The fourth
requires the bank or broker-dealer to furnish the authorizing fiduciary
a written confirmation statement with respect to each covered
transaction within five days of execution. The fifth requires that the
bank or broker-dealer maintains records necessary for plan fiduciaries,
participants, and the Department and Internal Revenue Service to
determine whether the conditions of the exemption are being met for
period of six years form the date of execution of a transaction.
By requiring that records pertaining to the exempted transaction be
maintained for six years, this ICR insures that the exemption is not
abused, the rights of the participants and beneficiaries are protected,
and that compliance with the exemption's conditions can be confirmed.
The exemption affects participants and beneficiaries of the plans that
are involved in such transactions as well as certain banks, broker-
dealers, and domestic affiliates thereof .
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. 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.
Comments submitted in response to this notice will be summarized
and/or included in the request for OMB approval of the information
collection request; they will also become a matter of public record.
Agency: Employee Benefits Security Administration, Department of
Labor.
Title: Prohibited Transaction Class Exemption 98-54 relating to
Certain Employee Benefit Plan Foreign Exchange Transactions Executed
Pursuant to Standing Instructions.
Type of Review: Extension of a currently approved collection of
information.
OMB Number: 1210-0111.
Affected Public: Individuals or households; Business or other for-
profit; Not-for-profit institutions.
Respondents: 35.
Responses: 8,400.
Average Response Time: 30 minutes.
Estimated Total Burden Hours: 4,200.
Total Annualized Capital/Startup Costs: $0.
Total Annual Costs (operating/maintaining systems or purchasing
services): $0.
Dated: November 24, 2004.
Gerald B. Lindrew,
Deputy Director, Office of Policy and Research, Employee Benefits
Security Administration.
[FR Doc. 04-26546 Filed 12-1-04; 8:45 am]
BILLING CODE 4510-29-P