Interim Final Amendment of ERISA section 408(b)(2) Regulation

Forms and Documents

Document Name	Status
408b2SSOMB02-2010.doc Supporting Statement A	2010-03-01

IC Document Collections

IC ID	Document Title	Status
182240	Proposed Class Exemption Notice to Department of Labor	Removed
182238	Proposed Class Exemption Notice to Service Providers	Removed
182236	Interim Final Rule and Exemption Disclosure Notices	Modified

ICR Details

OMB Control No: 1210-0133	ICR Reference No: 201108-1210-001
Status: Historical Active	Previous ICR Reference No: 201002-1210-004
Agency/Subagency: DOL/EBSA	Agency Tracking No: 1210-AB08-zA13
Title: Interim Final Amendment of ERISA section 408(b)(2) Regulation
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 08/02/2011
	Date Received in OIRA: 08/02/2011
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	05/31/2013	36 Months From Approved
Responses	1,193,951	0	0
Time Burden (Hours)	1,694,000	0	0
Cost Burden (Dollars)	3,899,852	0	0

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Abstract: The Interim Final Employee Retirement Income Security Act of 1974 (ERISA) section 408(b)(2) regulation would provide relief for certain arrangements between plans and service providers that ERISA section 406(a)(1)(C) otherwise proscribes. To obtain this relief, the arrangement between a plan and a service provider must satisfy several criteria: the services must be necessary for the establishment or operation of the plan and the plan may pay no more than reasonable compensation for the services. The Department is also issuing a prohibited transaction class exemption in conjunction with the interim final rule. The class exemption grants plan fiduciaries relief from liability for a prohibited transaction resulting from the service provider’s failure to comply with section 408(b)(2). The Department recognizes that a plan fiduciary may on occasion unknowingly conclude a contract or arrangement that does not meet the requirements of the regulation for relief under ERISA section 408(b)(2), in the reasonable belief that the service provider has already divulged the requisite information. This act would constitute a prohibited transaction by both the service provider and the plan fiduciary, but for the availability of the proposed class exemption. Under the interim final rule, for a contract or arrangement to be “reasonable,” a potential service provider must disclose to a plan in writing certain information before the plan may enter into, extend, or renew the contract or arrangement. Failure to comply with the proposed regulation would result in a prohibited transaction both under ERISA section 406(a) (1) (C) and under section 4975(c) (1) (C) of the Internal Revenue Code.

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

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
1210-AB08	Final or interim final rulemaking	75 FR 41600	07/16/2010

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	72 FR 70988	12/13/2007
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
Interim Final Rule and Exemption Disclosure Notices
Proposed Class Exemption Notice to Service Providers
Proposed Class Exemption Notice to Department of Labor

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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	1,193,951	0	0	1,193,951	0	0
Annual Time Burden (Hours)	1,694,000	0	0	1,694,000	0	0
Annual Cost Burden (Dollars)	3,899,852	0	0	3,899,852	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 hour and cost burden result from new information collection requirements.

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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)? 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: 03/02/2010

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