Notice 2006-xx - Diversification Requirements for Qualified Defined Contribution Plans Holding Publicly Traded Employer Securities.

Forms and Documents

Document Name	Status
jct.x-38-06.HR4.507.and.901.rtf Supplementary Document	2006-11-14
notice2006-xx.11.08.doc Justification for No Material/Nonsubstantive Change	2006-11-14
OMB.notice2006-xx.PPA.901.ss.doc Supporting Statement A	2006-11-14

IC Document Collections

IC ID	Document Title	Status
46005	Notice 2006-xx - Diversification Requirements for Qualified Defined Contribution Plans Holding Publicly Traded Employer Securities.	New

ICR Details

OMB Control No: 1545-2049	ICR Reference No: 200611-1545-015
Status: Historical Active	Previous ICR Reference No:
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Notice 2006-xx - Diversification Requirements for Qualified Defined Contribution Plans Holding Publicly Traded Employer Securities.
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Emergency	Approval Requested By: 11/30/2006
OIRA Conclusion Action: Approved without change	Conclusion Date: 11/22/2006
	Date Received in OIRA: 11/17/2006
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	05/31/2007	6 Months From Approved
Responses	4,542,300	0	0
Time Burden (Hours)	7,725	0	0
Cost Burden (Dollars)	0	0	0

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Abstract: This notice contains two model forms that may be used by employers to notify plan participants of their diversification rights under sections 901 and 507 of the Pension Protection Act of 2006.

Emergency Justfication: Sections 507 and 901 of the Pension Protection Act of 2006, as enacted on August 18, 2006 and as effective for plan years beginning after December 31, 2006, require certain employers to give notice to their employee-participants of those employers defined contribution plans of the ability to divest their accounts of employer securities. Section 901 of the PPA’06 makes this a qualification requirement. While it is possible for the Service to provide model notices that may be used by almost all affected employers, the dissemination of these notices creates a paperwork burden on these employers. An emergency request for a valid OMB control number is necessitated in this instance as a result of the short time period between the date of enactment of the statutory provision and its effective date as well as after taking into consideration the time needed by the Service and the Treasury to identify the issues and provide meaningful responses.

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Authorizing Statute(s): US Code: 26 USC 401(a)(35) Name of Law: null
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Notice 2006-xx - Diversification Requirements for Qualified Defined Contribution Plans Holding Publicly Traded Employer Securities.

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	4,542,300	0	0	4,542,300	0	0
Annual Time Burden (Hours)	7,725	0	0	7,725	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Changing Regulations

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: This new notice provides transitional guidance on § 401(a)(35) of the Internal Revenue Code, added by section 901 of the Pension Protection Act of 2006, Public Law 109-280, 120 Stat. 780 (“PPA ’06”), which provides diversification rights with respect to publicly traded employer securities held by a defined contribution plan.

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Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? Uncollected

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? Uncollected

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? Uncollected

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 11/17/2006

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