Employee Retirement Income Security Act Prohibited Transaction Exemption 1986-128 For Securities Transactions Involving Employee Benefit Plans and Broker-Dealers

Forms and Documents

Document Name	Status
1210-0059 PTE 86-128 Supporting Statement 11-02-2023.docx Supporting Statement A	2023-11-02

IC Document Collections

IC ID	Document Title	Status
38407	Employee Retirement Income Security Act Prohibited Transaction Exemption 1986-128 For Securities Transactions Involving Employee Benefit Plans and Broker-Dealers Other-Prohibited Transaction Exemption	Modified

ICR Details

OMB Control No: 1210-0059	ICR Reference No: 202308-1210-006
Status: Received in OIRA	Previous ICR Reference No: 202204-1210-004
Agency/Subagency: DOL/EBSA	Agency Tracking No:
Title: Employee Retirement Income Security Act Prohibited Transaction Exemption 1986-128 For Securities Transactions Involving Employee Benefit Plans and Broker-Dealers
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 11/03/2023

	Requested	Previously Approved
Expiration Date	36 Months From Approved	08/31/2025
Responses	33,570	275,745
Time Burden (Hours)	2,929	2,193
Cost Burden (Dollars)	37,034	296,108

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Abstract: Prohibited Transaction Exemption 86-128 (as amended) permits persons who serve as fiduciaries for employee benefit plans to effect or execute securities transactions on behalf of employee benefit plans.

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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-ZA34	Proposed rulemaking	88 FR 76032	11/03/2023

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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
Employee Retirement Income Security Act Prohibited Transaction Exemption 1986-128 For Securities Transactions Involving Employee Benefit Plans and Broker-Dealers

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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	33,570	275,745	0	0	-242,175	0
Annual Time Burden (Hours)	2,929	2,193	0	0	736	0
Annual Cost Burden (Dollars)	37,034	296,108	0	0	-259,074	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: The number of plans affected has been updated to reflect updated Form 5500 data, and thus, the number of responses has decreased. The estimated number of affected broker-dealer fiduciaries has also been updated to reflect current Securities and Exchange Commission data. In addition, the Department has also revised its estimate of the wage and postage costs due to increased labor costs and inflation. The Department is proposing to amend PTE 86-128 by adding a recordkeeping requirement for financial institutions. In addition, the amendment would cover IRAs in Section III of the class exemption. Section III imposes information collection requirements on fiduciaries of employee benefit plans and IRAs that affect or execute securities transactions and the independent plan fiduciary authorizing the plan to engage in the transactions with the broker-dealer. Thus, IRAs have been included in this analysis, and thus, the hour burden has increased. As a result, the number of responses has decreased by 242,175 responses, the hour burden increased by 736 hours, and the cost burden decreased by $259,074. Finally, the Department is amending PTE 86-128 by removing fiduciary investment advice from the covered transactions. While the Department is proposing to amend PTE 86-128 by removing fiduciary investment advice from the covered transactions, the Department believes that this would result in a marginal change. Thus, this change would not affect the hour and cost burden.

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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? Yes

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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: 11/03/2023

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