Procedure for Application for Exemption from the Prohibited Transaction Provisions of Section 408(a) of the Employee Retirement Income Security Act of 1974 (ERISA)

Forms and Documents

Document Name	Status
ss ERISA 408(a) (1210-0060)final.doc Supporting Statement A	2011-07-19

IC Document Collections

IC ID	Document Title	Status
13362	Procedure for Application for Exemption from the Prohibited Transaction Provisions of Section 408(a) of the Employee Retirement Income Security Act of 1974 (ERISA)	Modified

ICR Details

OMB Control No: 1210-0060	ICR Reference No: 201110-1210-003
Status: Historical Active	Previous ICR Reference No: 200807-1210-001
Agency/Subagency: DOL/EBSA	Agency Tracking No:
Title: Procedure for Application for Exemption from the Prohibited Transaction Provisions of Section 408(a) of the Employee Retirement Income Security Act of 1974 (ERISA)
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 10/27/2011
	Date Received in OIRA: 10/27/2011
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	10/31/2014	36 Months From Approved	10/31/2011
Responses	22,925	0	16,434
Time Burden (Hours)	2,564	0	1,958
Cost Burden (Dollars)	1,547,000	0	7,937

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Abstract: This collection provides the Secretary with information neededto grant exemptions from the prohibited transaction sections of 406 and 407(a) of ERISA.

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Authorizing Statute(s): US Code: 29 USC 1108 Name of Law: Employee Retirement Income Security Act of 1974
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
1210-AA98	Final or interim final rulemaking	76 FR 66637	10/27/2011

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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
Procedure for Application for Exemption from the Prohibited Transaction Provisions of Section 408(a) of the Employee Retirement Income Security Act of 1974 (ERISA)

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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	22,925	16,434	0	6,491	0	0
Annual Time Burden (Hours)	2,564	1,958	0	606	0	0
Annual Cost Burden (Dollars)	1,547,000	7,937	0	1,539,063	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: The Department is issuing a proposed rule that would, if adopted, supersede the existing rule of procedure governing the filing and processing of applications for administrative exemptions from the prohibited transaction provisions of the Employee Retirement Income Security Act of 1974 (ERISA), the Internal Revenue Code of 1986 (the Code), and the Federal Employees' Retirement System Act of 1986 (FERSA). The proposed regulation updates the exemption procedure to reflect various changes in the Department's practices that have evolved since the current procedural rule was adopted in 1990. Among other things, key elements of the exemption policies and guidance currently found in ERISA Technical Release 85-1 (pertaining to retroactive exemptions) and the Department's 1995 exemption publication would be consolidated within the text of a unitary, comprehensive final regulation, thus reducing the regulatory burdens on applicants for exemptive relief. Sections 2570.34 and 2570.35 of the exemption procedure regulation would be expanded as follows: all applications would be required to include a chronology of events leading to the exemption transaction; the specialized statements from qualified independent appraisers would be amended to require the appraisal report to be current and not more than one year old as of the date of the transaction and the appraiser's rationale, credentials, and a statement regarding the appraiser's independence from the parties involved in the transaction would need to be included; a new requirement would be added regarding the content requirements for specialized statements submitted by third-party experts other than qualified independent appraisers; a new qualified independent fiduciary statements would be required that discloses the independent fiduciary's qualifications, duties, and current compensation. A new requirement contained in section 2570.43(d) and (e), if adopted, would permit the Department, in its discretion, to require an applicant to furnish interested persons with a Summary of Proposed Exemption (SPE). The Departments expects this requirement to be used in instances where the proposed transaction is relatively complex, and it is likely that the notice of proposed exemption may not be readily understandable by interested persons (i.e., participants and beneficiaries). The SPE, must be written in a manner calculated to be understood by the average recipient. Among other things, the SPE must objectively describe the exemption transaction and the parties thereto, the reasons why the plan seeks to engage in the transaction, and the conditions and safeguards proposed to protect the plan and its participants from potential abuse or unnecessary risk of loss in the event the Department grants the exemption. Applicants who must provide interested persons with an SPE also would be required to furnish the Department with a copy of the SPE for review and approval before it is distributed to interested persons. Finally, the Department also proposes to amend §2570.43 to permit applicants to utilize electronic means (such as e-mail) to deliver notice to interested persons of a pending exemption, provided that the applicant can demonstrate satisfactory proof of electronic delivery to the entire class of interested persons.

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Annual Cost to Federal Government: $28,242

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]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

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: 08/25/2011

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