[Federal Register: April 6, 2005 (Volume 70, Number 65)]
[Notices]
[Page 17475-17476]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06ap05-123]
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DEPARTMENT OF LABOR
Employee Benefits Security Administration
Proposed Extension of Information Collection Request Submitted
for Public Comment and Recommendations; PTE 86-128
ACTION: Notice.
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SUMMARY: The Department of Labor (Department), 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 concerning the proposed
extension of a currently approved collection of information, Prohibited
Transaction Class Exemption 86-128 for certain transactions involving
employee benefit plans and securities broker-dealers.
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 to the office listed in the
ADDRESSES section below on or before June 6, 2005.
ADDRESSES: Interested parties are invited to submit written comments
regarding the collection of information. Send comments to Mr. Gerald B.
Lindrew, Office of Policy and Research, U.S. Department of Labor,
Employee Benefits Security Administration, 200 Constitution Avenue,
NW., Room N-5647, Washington, DC 20210. Telephone: (202) 693-8410. Fax:
(202) 693-4745 (These are not toll-free numbers).
SUPPLEMENTARY INFORMATION:
I. Background
Prohibited Transaction Class Exemption 86-128 permits persons who
serve as fiduciaries for employee benefit plans to effect or execute
securities transactions on behalf of employee benefit plans. The
exemption also allows sponsors of pooled separate accounts and other
pooled investment funds to use their affiliates to effect or execute
securities transactions for such accounts in order to recapture
brokerage commissions for benefit of employee benefit plans whose
assets are maintained in pooled separate accounts managed by the
insurance companies. This exemption provides relief from certain
prohibitions in section 406(b) of the Employee Retirement Income
Security Act of 1974 (ERISA) and from the taxes imposed by section
4975(a) and (b) of the Internal Revenue Code of 1986 (the Code) by
reason of Code section 4975(c)(1)(E) or (F).
In order to insure 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 five information collection requirements. The
first requirement is written authorization executed in advance by an
independent fiduciary of the plan whose assets are involved in the
transaction with the broker-fiduciary. The second requirement is,
within three months of the authorization, the broker-fiduciary furnish
the independent fiduciary with any reasonably available information
necessary for the independent fiduciary to determine whether an
authorization should be made. The information must include a copy of
the exemption, a form for termination, and a description of the broker-
fiduciary's brokerage placement practices. The third requirement is
that the broker-fiduciary must provide a termination form to the
independent fiduciary annually so that the independent fiduciary may
terminate the authorization without penalty to the plan; failure to
return the form constitutes continuing authorization. The fourth
requirement is for the broker-fiduciary to report all transactions to
the independent fiduciary, either by confirmation slips or through
quarterly reports. The fifth requirement calls for the broker-fiduciary
to provide an annual summary of the transactions. The annual summary
must contain all security transaction-related charges incurred by the
plan, the brokerage placement practices, and a portfolio turnover
ratio.
II. Review Focus
The 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 Department is requesting an extension of the currently approved
ICR pertaining to Prohibited Transaction Class Exemption 86-128 for
certain transactions involving employee benefit plans and securities
broker-dealers. The Department is not proposing or implementing changes
to the existing ICR at this time.
Agency: Department of Labor, Employee Benefits Security
Administration.
Title: PTE 86-128 for Certain Transactions Involving Employee
Benefit Plans and Securities Broker-Dealers.
Type of Review: Extension of a currently approved collection.
OMB Numbers: 1210-0059.
Affected Public: Individuals or households; Business or other for-
profit; Not-for-profit institutions.
Total Respondents: 4,200.
Total Responses: 284,000.
Frequency of Response: Quarterly; Annually.
Total Annual Burden: 93,530 hours.
Total Annual Cost (Operating & Maintenance): $183,550.
Comments submitted in response to this request will be summarized
and/or
[[Page 17476]]
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: March 31, 2005.
Gerald B. Lindrew,
Deputy Director, Office of Policy and Research, Employee Benefits
Security Administration.
[FR Doc. 05-6751 Filed 4-5-05; 8:45 am]
BILLING CODE 4510-29-P