Proposed Extension of Information Collection Request Submitted for Public Comment and Recommendations

DEPARTMENT OF LABOR

Pension and Welfare Benefits Administration

Proposed Extension of Information Collection Request Submitted

for Public Comment and Recommendations

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 preclerance

consultation program to provide the general public and other 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) (44 U.S.C. 3506(c)(2)(A)). This program helps to

ensure that requested

[[Page 34665]]

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 81-8 for investment of plan assets in

certain types of short-term investments. 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 must be submitted to the office listed in ADDRESSES

section below on or before August 24, 1998. The Department of Labor is

particularly interested in comments which:

Evalaute 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;

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 submission of responses.

ADDRESSES: Interested parties are invited to submit written comments

regarding the collection of information of any or all of the Agencies.

Send comments to Mr. Gerald B. Lindrew, Office of Policy and Research,

U.S. Department of Labor, Pension and Welfare Benefits Administration,

200 Constitution Avenue, NW, Room N-56457, Washington, D.C. 20210.

Telephone: (202) 219-4782 (this is not a toll-free number).

SUPPLEMENTARY INFORMATION:

I. Background

Prohibited Transaction Class Exemption 81-8 permits the investment

of plan assets which involve the purchase or other acquisition,

holding, sale, exchange or redemption by or on behalf of an employee

benefit plan of certain types of short-term investments. These include

investments in banker's acceptances, commercial paper, repurchase

agreements, certificates of deposit, and bank securities. In absence of

the exemption, certain aspects of these transactions might be

prohibited by section 406 of the Employee Retirement Income Security

Act (ERISA).

II. Current Actions

The Office of Management and Budget's approval of this ICR will

expire on September 30, 1998. This existing collection of information

should be continued because without the relieve provided by this

exemption, plans would not be able to continue to invest plan assets in

certain short term investments in debt obligations issued by certain

persons who provide services to the plan or who are affiliated with

such service providers. In most instances, the service providers

engaging in such transactions with the plans are already providing

services to the plan. Without this exemption, these types of

transactions could not continue, causing disruption of the existing

business practices of the plan and the businesses that service them.

In order to ensure 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 two basic disclosure requirements. Both

affect only the portion of the exemption dealing with repurchase

agreements. The first requirement calls for the repurchase agreements

between the seller and the plan to be in writing. These repurchase

agreements cover a period of one year or less and may be in the form of

a blanket agreement for one year. The second requirement obliges the

seller of such repurchase agreements to agree to provide financial

statements to the plan at the time of the sale and as the statements

are issued. The seller must also represent, either in the repurchase

agreement or prior to each repurchase agreement transaction, that as of

the time the transaction is negotiated, there has been no material

adverse change in the seller's financial condition since the date the

most recent financial statement was furnished that has not been

disclosed to the plan fiduciary with whom the written agreement is

made. This requirement may be met by the seller stating in the

repurchase agreement that by making the sale they are representing that

there is no material or adverse change their financial condition.

Agency: Department of Labor, Pension and Welfare Benefits

Administration.

Title: Prohibited Transaction Class Exemption 81-8 for Investment

of Plan Assets in Certain Types of Short-Term Investments.

Type of Review: Extension of currently approved collection.

OMB Number: 1210-0061.

Affected Public: Individuals or households; Business or other for-

profit; Not-for-profit institutions.

Total Respondents: 18,245.

Total Responses: 91,225.

Frequency of Response: On occasion.

Total Annual Burden: 15,204 hours.

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: June 19, 1998.

Gerald B. Lindrew,

Deputy Director, Pension and Welfare Benefits Administration, Office of

Policy and Research.

[FR Doc. 98-16936 Filed 6-24-98; 8:45 am]

BILLING CODE 4570-29-M