[Federal Register: February 26, 2004 (Volume 69, Number 38)]
[Notices]
[Page 8989-8990]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26fe04-108]
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DEPARTMENT OF LABOR
Employee Benefits Security Administration
Proposed Extension of Information Collection Request Submitted
for Public Comment; Prohibited Transaction Class Exemption 91-55--
Transactions Between Individual Retirement Accounts and Authorized
Purchasers of American Eagle Coins
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 requirements on respondents can be
properly assessed. Currently, the Employee Benefits Security
Administration is soliciting comments on the proposed extension of
Prohibited Transaction Class Exemption 91-55, pertaining to
transactions between individual retirement accounts and authorized
purchasers of American Eagle coins.
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 April 26, 2004.
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
Prohibited Transaction Exemption 91-55 permits purchases and sales
by certain ``individual retirement accounts,'' as defined in Internal
Revenue Code section 408 (IRAs) of American Eagle bullion coins
(``Coins'') in principal transactions from or to broker-dealers in
Coins that are ``authorized purchasers'' of Coins in bulk quantities
from the United States Mint and which are also ``disqualified
persons,'' within the meaning of Code section 4975(e)(2), with respect
to IRAs. The exemption also describes the circumstances under which an
interest-free extension of credit in connection with such sales and
purchases is permitted. In the absence of an exemption, such purchases
and sales and extensions of credit would be impermissible under the
Employee Retirement Income Security Act of 1974 (ERISA).
The information collection request for this exemption includes
three requirements. First, certain information related to covered
transactions in Coins must be disclosed by the authorized purchaser to
persons who direct the transaction for the IRA. Currently, it is
standard industry practice that most of this information is provided to
persons directing investments in an IRA when transactions in Coins
occur. The
[[Page 8990]]
exemption also requires that the disqualified person maintain for a
period of at least six years such records as are necessary to allow
accredited persons, as defined in the exemption, to determine whether
the conditions of the transaction have been met. Finally, an authorized
purchaser must provide a confirmation statement with respect to each
covered transaction to the person who directs the transaction for the
IRA.
The recordkeeping requirement facilitates the Department's ability
to make findings under section 408 of ERISA and section 4975(c) of the
Code. The confirmation and disclosure requirements protect a
participant or beneficiary who invests in IRAs and transacts in Coins
with authorized purchasers by providing the investor or the person
directing his or her investments with timely information about the
market in Coins and about the individual's account in particular.
II. Review Focus
The Department of Labor (Department) is particularly interested in
comments that:
[sbull] 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;
[sbull] 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;
[sbull] Enhance the quality, utility, and clarity of the
information to be collected; and
[sbull] 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 June 30, 2004. 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: Prohibited Transaction Class Exemption 91-55.
Type of Review: Extension of a currently approved collection of
information.
OMB Number: 1210-0079.
Affected Public: Individuals or households; Business or other for-
profit; Not-for-profit institutions.
Respondents: 2.
Responses: 12,800.
Frequency: On occasion.
Estimated Total Burden Hours: 554 hours.
Comments submitted in response to this notice will be summarized
and/or included in the request for OMB approval of the ICR; they will
also become a matter of public record.
Dated: February 20, 2004.
Gerald B. Lindrew,
Deputy Director, Office of Policy and Research, Employee Benefits
Security Administration.
[FR Doc. 04-4246 Filed 2-25-04; 8:45 am]
BILLING CODE 4510-29-P