This final regulation implements the
provisions of the statutory exemption set forth in sections
408(b)(14) and 408(g) of the Employee Retirement Income Security
Act, as amended (ERISA or the Act), and parallel provisions in
sections 4975(d)(17) and 4975(f)(8) of the Internal Revenue Code of
1986, as amended (Code), relating to the provision of investment
advice described in section 3(21)(A)(ii) of the Act by a fiduciary
adviser to participants and beneficiaries in participant-directed
individual account plans, such as 401(k) plans, and beneficiaries
of individual retirement accounts (and certain similar
plans).
US Code:
29
USC 1108(g) Name of Law: Employee Retirement Income Security
Act of 1974
US Code:
29 USC 1108(b)(14) Name of Law: Employee Retirement Income
Security Act of 1974
PL: Pub.L. 109 - 280 601 Name of Law: Pension
Protection Act of 2006
The Department calculated the
estimated hour and cost burden of the ICRs under the final rule
using the same methodology that was used in making such estimate in
the March 2010 proposal. The Department has made a minor increase
to the estimated number of DC plan sponsors offering advice, the
number of DC plan participants utilizing advice, and the labor hour
rates used to estimate the hour burden based on more current data.
The Department also has taken into account a new requirement in
paragraph (b)(8) of the final rule, which requires fiduciary
advisers to provide written notification to authorizing fiduciaries
stating that it: (i) intends to comply with the conditions of the
statutory exemption under ERISA sections 408(b)(14) and 408(g) and
these final regulations; (ii) will be audited annually by an
independent auditor for compliance with the conditions of the
exemption and regulations; and, (iii) that the auditor will furnish
the authorizing fiduciary with a copy of the auditor's findings
within 60 days of completion of the audit. All other calculations
remain the same as in the March 2010 proposed rule.
$0
No
No
No
No
No
Uncollected
Chris Cosby 202
693-8540
No
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:
(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;
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.
InvAdv PRA_SS.doc
Audit Requirement