Proposed Information Collection Request Submitted for Public Comment and Recommendations; Prohibited Transaction Class Exemption 91- 38

DEPARTMENT OF LABOR

Pension and Welfare Benefits Administration

Proposed Information Collection Request Submitted for Public

Comment and Recommendations; Prohibited Transaction Class Exemption 91-

38

ACTION: Notice.

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SUMMARY: The Department of Labor, as part of its continuing effort to

reduce paperwork and respondent burden, provides the general public and

Federal agencies with an opportunity to comment on proposed and/or

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 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 91-38. A copy of the proposed information collection request

can be obtained by contacting the employee listed below in the contact

section of this notice.

DATES: Written comments must be submitted on or before January 31,

1997. The Department of Labor is particularly interested in comments

which:

* 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 clarify 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.

ADDRESSEE: Gerald B. Lindrew, Department of Labor, Pension and Welfare

Benefits Administration, 200 Constitution Avenue, NW., Washington, DC

20210, (202) 219-7933, FAX (202) 219-4745.

SUPPLEMENTARY INFORMATION:

I. Background

Prohibited Transaction Class Exemption 91-38 provides an exemption

from the prohibited transaction provisions of ERISA for certain

transactions between a bank collective investment fund and persons who

are parties in interest with respect to a plan as long as the plan's

participation in the collective investment fund does not exceed a

specified percentage of the total assets in the collective investment

fund. In order to ensure that the exemption is not abused, that the

rights of participants and beneficiaries are protected, and that

compliance with the exemption's conditions are taking place, DOL has

required that records regarding the exempted transactions be maintained

for six years.

II. Current Actions

This existing collection of information should be continued because

without the exemption, individuals or entities which are parties in

interest of a plan that invests in a bank collective investment fund

would not be able to engage in transactions with the collective

investment fund and would, thus, create a potential hardship to those

affected. For DOL to grant an exemption, however, it needs to assure

that the plan's participants and beneficiaries are protected. It,

therefore, included certain conditions in the exemption, and required

that records be kept for six years from the date of the transaction so

that it can be determined whether these conditions have been followed.

Without such records, DOL and other interested parties, such as

participants, would be unable to effectively enforce the terms of the

exemption and ensure user compliance.

Type of Review: Extension

Agency: Pension and Welfare Benefits Administration

Title: Prohibited Transaction Class Exemption 91-38

OMB Number: 1210-0082

Affected Public: Business or other for-profit, Not-for-profit

institutions, Individuals

Frequency: On occasion

Estimated Total Burden Hours: 1

Respondents, proposed frequency of response, and annual hour

burden: Under ERISA regulation section 2520.103-9, banks sponsoring

collective investment funds are required to

[[Page 63871]]

maintain certain records each year for preparing the annual report or

to be supplied to the plan sponsor to prepare the annual report. In

addition, banks are highly regulated by state and federal law, and

their books and records are subject to periodic examination by state

and federal agencies. Because of the ERISA annual reporting

requirements and the heavy state and federal regulation, the Department

has assumed that the records required by this class exemption are the

same records kept in the normal course of business by banks. Therefore,

the burden of this exemption is minimal, and the Department has

assigned one hour to it.

Total Burden Cost (capital/start-up): $0.00

Total Burden Cost (operating/maintenance): $0.00

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: November 26, 1996.

Gerald B. Lindrew,

Director, Pension and Welfare Benefits Administration, Office of Policy

and Legislative Analysis.

[FR Doc. 96-30605 Filed 11-29-96; 8:45 am]

BILLING CODE 4510-29-M