Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights

Forms and Documents

Document	Type	Status	Availability
1210-0162 ESG-Proxy Supporting Statement 10-14-21.docx	Supporting Statement A	Uploaded 2021-10-14	Repair queued
29 USC 1104 - 1132.pdf	Supplementary Document	Uploaded 2020-06-30	Repair queued

IC Document Collections

IC ID	Collection	Type	Status	Form
241196	Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights		Modified

ICR Details

OMB Control No: 1210-0162	ICR Reference No: 202109-1210-002
Status: Received in OIRA	Previous ICR Reference No: 202009-1210-002
Agency/Subagency: DOL/EBSA	Agency Tracking No:
Title: Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 10/14/2021

	Requested	Previously Approved
Expiration Date	36 Months From Approved	01/31/2024
Responses	52,965	323
Time Burden (Hours)	17,655	1,290
Cost Burden (Dollars)	0	0

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Abstract: The proposed rule requires that if a fiduciary prudently concludes that competing investments or investment courses of action equally serve the financial interests of the plan over the appropriate time horizon, the fiduciary is not prohibited from selecting the investment, or investment course of action, based on collateral benefits other than investment returns. In the case of a designated investment alternative for an individual account plan, the plan fiduciary must ensure that the collateral-benefit characteristic of the fund, product, or model portfolio is prominently displayed in disclosure materials provided to participants and beneficiaries. This new disclosure is expected to be useful to participants and beneficiaries in deciding how to invest their plan accounts.

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Authorizing Statute(s): EO: EO 14030 Name/Subject of EO: Executive Order on Climate-Related Financial Risk
   US Code: 29 USC 1104 Name of Law: Employee Retirement Income Security Act of 1974
  

Citations for New Statutory Requirements: EO: EO 14030 Name/Subject of EO: Executive Order on Climate-Related Financial Risk

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
1210-AC03	Proposed rulemaking	86 FR 57272	10/14/2021

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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
Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights

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ICR Summary of Burden

	Total Request	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	52,965	323	52,642	0	0	0
Annual Time Burden (Hours)	17,655	1,290	16,365	0	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

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

Burden Increase Due to:

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

Burden Reduction Due to:

Short Statement: On March 10, 2021, the Department announced that it would stay enforcement of the 2020 rules pending a complete review of the matter. Subsequently, on May 20, 2021, the President issued Executive Order 14030, entitled “Executive Order on Climate-Related Financial Risk.” Section 4 of the Executive Order directs the Department to consider suspending, revising, or rescinding any rules from the prior administration that would have barred plan fiduciaries (and their investment-firm service providers) from considering environmental, social and governance factors, including climate-related risks, in their investment decisions related to workers’ pensions. In light of the foregoing, the Department concluded that additional notice and comment rulemaking was necessary to safeguard the interests of participants and beneficiaries in their retirement and welfare plan benefits.

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Annual Cost to Federal Government: $0

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

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     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? No

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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: 10/14/2021

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