Abandoned Individual Account Plan Termination

Federal Register / Vol. 73, No. 195 / Tuesday, October 7, 2008 / Notices
Missouri) 1027–1035 S. Main St.,
Joplin, 08001024

DEPARTMENT OF THE INTERIOR
National Park Service

St. Louis Independent City
Farm and Home Savings and Loan
Association, 1001 Locust St., St. Louis
(Independent City), 08001025

National Register of Historic Places;
Notification of Pending Nominations
and Related Actions
Nominations for the following
properties being considered for listing
or related actions in the National
Register were received by the National
Park Service before September 20, 2008.
Pursuant to section 60.13 of 36 CFR Part
60 written comments concerning the
significance of these properties under
the National Register criteria for
evaluation may be forwarded by United
States Postal Service, to the National
Register of Historic Places, National
Park Service, 1849 C St. NW., 2280,
Washington, DC 20240; by all other
carriers, National Register of Historic
Places, National Park Service, 1201 Eye
St. NW., 8th floor, Washington DC
20005; or by fax, 202–371–6447. Written
or faxed comments should be submitted
by October 22, 2008.
J. Paul Loether,
Chief, National Register of Historic Places/
National Historic Landmarks Program.

Chiricahua National Monument Historic
Designed Landscape, (Historic Park
Landscapes in National and State
Parks MPS) 12856 E. Rhyolite Canyon
Rd., Willcox, 08001020
COLORADO
Weld County
Clubhouse—Student Union, (New Deal
Resources on Colorado’s Eastern
Plains MPS) Between 18th & 19th Sts.,
& 8th & 10th Aves., Greeley, 08001021
LOUISIANA
Assumption Parish
LaBarre House, 4371 LA 1,
Napoleonville, 08001019
MARYLAND
Montgomery County
Krieger, Seymour, House, 9739
Brigadoon Dr., Bethesda, 08001022
MISSOURI

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Greene County
Ambassador Apartments, (Springfield
MPS) 1235 E. Elm St., Springfield,
08001023

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SOUTH DAKOTA
McPherson County
Leola Post Office, 741 Sherman St.,
Leola, 05000627
[FR Doc. E8–23663 Filed 10–6–08; 8:45 am]
BILLING CODE 4312–51–P

DEPARTMENT OF LABOR
Employee Benefits Security
Administration
RIN 1210–ZA12

Cochise County

Inter-State Grocer Company Building,
(Historic Resources of Joplin,

Pierce County
McChord Field Historic District,
McChord AFB, Tacoma, 08001026
A request for removal has been made
for the following resource:

[Application Number D–11404]

ARIZONA

Jasper County

WASHINGTON

Adoption of Amendment to Prohibited
Transaction Exemption 2006–06; (PTE
2006–06) For Services Provided in
Connection With the Termination of
Abandoned Individual Account Plans
Employee Benefits Security
Administration, U.S. Department of
Labor.
ACTION: Adoption of Amendment to PTE
2006–06.
AGENCY:

SUMMARY: This document amends PTE
2006–06 (71 FR 20856, Apr. 21, 2006),
a prohibited transaction class exemption
issued under the Employee Retirement
Income Security Act of 1974 (ERISA).
Among other things, PTE 2006–06
permits a ‘‘qualified termination
administrator’’ (QTA) of an individual
account plan that has been abandoned
by its sponsoring employer to select
itself to provide services to the plan in
connection with the plan’s termination,
and to pay itself fees for those services.
In response to changes to the Internal
Revenue Code of 1986 (the Code)
enacted as part of the Pension
Protection Act (PPA) of 2006, PTE
2006–06 is amended to require, as a
condition of relief under the exemption,
that benefits for a missing, designated
nonspouse beneficiary be directly rolled
over into an inherited individual
retirement plan that fully complies with
Code requirements. This amendment
also conforms to the Department’s final

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58629

rule amending regulations concerning
the Termination of Abandoned
Individual Account Plans at 29 CFR
2578.1 (the QTA Regulation), and the
Safe Harbor for Distributions from
Terminated Individual Account Plans at
29 CFR 2550.404a–3 (the Safe Harbor
Regulation), which appears elsewhere in
this issue of the Federal Register. The
amendment to the class exemption
affects plans, participants and
beneficiaries of such plans and certain
persons engaging in such transactions.
DATES: Effective Date: The class
exemption is effective November 6,
2008.
FOR FURTHER INFORMATION CONTACT:
Brian Buyniski, Office of Exemption
Determinations, Employee Benefits
Security Administration, U.S.
Department of Labor, (202) 693–8545
(this is not a toll-free number).
SUPPLEMENTARY INFORMATION: On
February 15, 2007, a notice was
published in the Federal Register (72
FR 7461) of the pendency before the
Department of a proposed amendment
to PTE 2006–06. This class exemption
(which was granted in connection with
the Department’s QTA Regulation, the
Department’s Safe Harbor Regulation
and the Department’s regulation relating
to the Special Terminal Report for
Abandoned Individual Account Plans at
29 CFR 2520.103–13,) provides an
exemption from the restrictions of
section 406(a)(1)(A) through (D), section
406(b)(1) and (b)(2) of the Employee
Retirement Income Security Act of 1974
(ERISA or the Act) and from the taxes
imposed by section 4975(a) and (b) of
the Internal Revenue Code of 1986 (the
Code), by reason of section 4975(c)(1)(A)
through (E) of the Code.
The Department is granting the
amendment on its own motion pursuant
to section 408(a) of ERISA and section
4975(c)(2) of the Code, and in
accordance with the procedures set
forth in 29 CFR part 2570, subpart B (55
FR 32836, 32847, August 10, 1990).1
The notice of pendency gave interested
persons an opportunity to comment or
request a public hearing on the
proposal. No comments were received
by the Department, nor were there any
requests for a public hearing, in
connection with the proposal.
Accordingly, the amendment to the
class exemption is adopted without
change.
The Department amends the class
exemption to reflect amendments to the
1 Section 102 of the Reorganization Plan No. 4 of
1978 (5 U.S.C. app. at 214 (2000) generally
transferred the authority of the Secretary of the
Treasury to issue administrative exemptions under
section 4975 of the Code to the Secretary of Labor.

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Federal Register / Vol. 73, No. 195 / Tuesday, October 7, 2008 / Notices

Code that were adopted by enactment of
the Pension Protection Act (PPA) of
2006 (Pub. L. 109–280, Aug. 17, 2006).
Among other things, section 829 of the
PPA amended Code section 402(c) to
permit the direct rollover of a deceased
plan participant’s benefit from an
eligible retirement plan to an individual
retirement plan established for the
designated nonspouse beneficiary of
such participant. In this connection, the
Department amends its regulatory safe
harbor for distributions from a
terminated individual account plan,
including an abandoned plan, to require
that a deceased participant’s benefit be
directly rolled over to an inherited
individual retirement plan established
to receive a distribution on behalf of a
missing, designated nonspouse
beneficiary. Similarly, the Department,
on its own motion, amends PTE 2006–
06 to ensure conformity with the
amended Abandoned Plan Regulations.2
As noted in the proposed amendment,
the Department interprets the term
‘‘account’’ (other than an individual
retirement plan) in section I(b)(1)(ii) and
the term ‘‘other account’’ in section
I(b)(3) and (4) of PTE 2006–06 to
include an ‘‘inherited individual
retirement plan’’ as used in the
amended Safe Harbor Regulation in the
context of a distribution to a nonspouse
beneficiary that does not qualify for
small account treatment under the
regulatory safe harbor. Consequently,
the exemption, prior to amendment,
provided relief to a QTA that selected
itself as the provider of an inherited
individual retirement plan under the
Safe Harbor Regulation. Accordingly,
the Department has amended the
covered transactions described in
section I(b)(ii) of PTE 2006–06 to
expressly provide that a distribution on
behalf of a missing nonspouse
beneficiary would qualify for exemptive
relief only if directly rolled into an
individual retirement plan that satisfies
the requirements of new section
402(c)(11) of the Code.3

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Executive Order 12866 Statement
Under Executive Order 12866, the
Department must determine whether a
regulatory action is ‘‘significant’’ and
therefore subject to the requirements of
the Executive Order and subject to
review by the Office of Management and
Budget (OMB). Under section 3(f) of the
2 See in this issue of the Federal Register
Amendments to Safe Harbor for Distributions from
Terminated Individual Account Plans and
Termination of Abandoned Individual Account
Plans to Require Inherited Individual Retirement
Plans for Missing Nonspouse Beneficiaries.
3 See also I.R.S Notice 2007–07, 2007–5 I.R.B.
395.

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Executive Order, a ‘‘significant
regulatory action’’ is an action that is
likely to result in a rule: (1) Having an
annual effect on the economy of $100
million or more, or adversely and
materially affecting a sector of the
economy, productivity, competition,
jobs, the environment, public health or
safety, or State, local or tribal
governments or communities (also
referred to as ‘‘economically
significant’’); (2) creating serious
inconsistency or otherwise interfering
with an action taken or planned by
another agency; (3) materially altering
the budgetary impacts of entitlement
grants, user fees, or loan programs or the
rights and obligations of recipients
thereof; or (4) raising novel legal or
policy issues arising out of legal
mandates, the President’s priorities, or
the principles set forth in the Executive
Order. Pursuant to the terms of the
Executive Order, it has been determined
that this action is not ‘‘significant’’
within the meaning of section 3(f) of the
Executive Order, and, therefore, is not
subject to review by OMB.
Paperwork Reduction Act
The information collections included
in PTE 2006–06 are currently approved,
together with information collections
included in the safe harbor and
termination of abandoned plans
regulations, by the Office of
Management and Budget (OMB) under
OMB control number 1210–0127. This
approval is currently scheduled to
expire on June 20, 2009. The specific
burden for the exemption includes a
recordkeeping requirement for a QTA
that terminates an abandoned plan and
chooses to distribute the account
balances of nonresponsive participants
and beneficiaries into proprietary or
affiliated individual retirement plans.
These amendments do not make any
changes to the information collections
of the exemption. Accordingly, the
Department has not made a submission
for OMB approval in connection with
the amendments.
Background
PTE 2006–06 is comprised of five
sections. Section I describes the
transactions that are covered by the
exemption. Section II contains
conditions for the provision of
termination services and the receipt of
fees. Section III contains the conditions
for distributions. Section IV contains the
general recordkeeping provisions
imposed on the QTA, and section V
contains definitions.
Section I(b) of the exemption
currently provides relief from the
restrictions of sections 406(a)(1)(A)

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through (D), 406(b)(1) and 406(b)(2) of
the Act and the taxes imposed by
section 4975(a) and (b) of the Code, by
reason of section 4975(c)(1)(A) through
(E) of the Code, for a QTA to use its
authority in connection with the
termination of an abandoned individual
account plan to designate itself or an
affiliate as provider of an individual
retirement plan 4 or other account to
receive the account balance of a
participant or beneficiary who does not
provide direction as to the disposition
of such assets. The other accounts
currently permitted by the exemption
include: An account (other than an
individual retirement plan, as described
in paragraph (d)(1)(ii) of the Safe Harbor
Regulation) for a distribution made to a
distributee other than a participant or
spouse; or an interest-bearing, federally
insured bank or savings association
account maintained in the name of the
participant or beneficiary for
distributions of $1,000 or less, as
described in section (d)(1)(iii) of the
Safe Harbor Regulation.
C. Discussion of the Amendment
Section 829 of the PPA amended
section 402(c) of the Code to permit the
direct rollover of a deceased
participant’s benefit from an eligible
retirement plan to an individual
retirement plan established on behalf of
a designated nonspouse beneficiary of
such participant.5 These rollover
distributions would not trigger
immediate tax consequences and
mandatory tax withholding for the
nonspouse beneficiary. Accordingly, in
light of the favorable changes to the
Code, the Department is amending both
PTE 2006–06 and the Safe Harbor
Regulation to require that a deceased
participant’s benefit be directly rolled
over to an inherited individual
retirement plan established to receive
the distribution on behalf of a missing,
designated nonspouse beneficiary.
General Information
The attention of interested persons is
directed to the following:
(1) The fact that a transaction is the
subject of an exemption under section
408(a) of ERISA and section 4975(c)(2)
of the Code does not relieve a fiduciary,
4 For purposes of the class exemption, the term
‘‘individual retirement plan’’ means an individual
retirement plan described in section 7701(a)(37) of
the Code.
5 Section 829 of the Pension Protection Act
requires that the individual retirement plan
established on behalf of a nonspouse beneficiary
must be treated as an inherited individual
retirement plan within the meaning of Code
§ 408(d)(3)(C) and must be subject to the applicable
mandatory distribution requirement of Code
§ 401(a)(9)(B).

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Federal Register / Vol. 73, No. 195 / Tuesday, October 7, 2008 / Notices
or other party in interest or disqualified
person with respect to a plan, from
certain other provisions of ERISA and
the Code, including any prohibited
transaction provisions to which the
exemption does not apply and the
general fiduciary responsibility
provisions of section 404 of ERISA
which require, among other things, that
a fiduciary act prudently and discharge
his or her duties respecting the plan
solely in the interests of the participants
and beneficiaries of the plan.
Additionally, the fact that a transaction
is the subject of an exemption does not
affect the requirement of section 401(a)
of the Code that the plan must operate
for the exclusive benefit of the
employees of the employer maintaining
the plan and their beneficiaries;
(2) This exemption does not extend to
transactions prohibited under section
406(b)(3) of the Act or section
4975(c)(1)(F) of the Code;
(3) In accordance with section 408(a)
of the Act and section 4975(c)(2) of the
Code, the Department finds that the
exemption is administratively feasible,
in the interests of the plan and of its
participants and beneficiaries, and
protective of the rights of participants
and beneficiaries of such plans;
(4) The amendment is applicable to a
particular transaction only if the
transaction satisfies the conditions
specified in the exemption; and
(5) The amendment is supplemental
to, and not in derogation of, any other
provisions of ERISA and the Code,
including statutory or administrative
exemptions and transitional rules.
Furthermore, the fact that a transaction
is subject to an administrative or
statutory exemption is not dispositive of
whether the transaction is in fact a
prohibited transaction.
Amendment
Under section 408(a) of the Act and
section 4975(c)(2) of the Code and in
accordance with the procedures set
forth in 29 CFR 2570, Subpart B (55 FR
32836, 32847, August 10, 1990), the
Department amends PTE 2006–06 as set
forth below:
Exemption * * *

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I. Covered Transactions * * *
(b) * * *
(1) Designate itself or an affiliate as:
(i) Provider of an individual retirement
plan; (ii) provider, in the case of a
distribution on behalf of a designated
beneficiary (as defined by section
401(a)(9)(E) of the Code) who is not the
surviving spouse of the deceased
participant, of an inherited individual
retirement plan (within the meaning of

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18:23 Oct 06, 2008

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section 402(c)(11) of the Code)
established to receive the distribution
on behalf of the nonspouse beneficiary
under the circumstances described in
section (d)(1)(ii) of the Safe Harbor
Regulation for Terminated Plans (29
CFR section 2550.404a–3) (the Safe
Harbor Regulation); or (iii) provider of
an interest bearing, federally insured
bank or savings association account
maintained in the name of the
participant or beneficiary, in the case of
a distribution described in section
(d)(1)(iii) of the Safe Harbor Regulation,
for the distribution of the account
balance of the participant or beneficiary
of the abandoned individual account
plan who does not provide direction as
to the disposition of such assets;
V. Definitions * * *
(b) The term ‘‘individual retirement
plan’’ means an individual retirement
plan described in section 7701(a)(37) of
the Code. For purposes of section III of
this exemption, the term ‘‘individual
retirement plan’’ shall also include an
inherited individual retirement plan
(within the meaning of section
402(c)(11) of the Code) established to
receive a distribution on behalf of a
nonspouse beneficiary. Notwithstanding
the foregoing, the term individual
retirement plan shall not include an
individual retirement plan which is an
employee benefit plan covered by Title
I of ERISA.
Signed at Washington, DC, this 26th day of
September, 2008.
Ivan L. Strasfeld,
Director, Office of Exemption Determinations.
[FR Doc. E8–23429 Filed 10–6–08; 8:45 am]
BILLING CODE 4510–29–P

58631

109% of the prior year and 106% of the
second prior year for the same period.
This causes Alaska to be triggered ‘‘off’’
an EB period. After the week ending
October 11, 2008, workers who exhaust
their regular UI benefits will no longer
be eligible to collect up to an additional
13 weeks of UI benefits under this
program.
Information for Claimants
The duration of benefits payable in
the EB Program, and the terms and
conditions on which they are payable,
are governed by the Federal-State
Extended Unemployment Compensation
Act of 1970, as amended, and the
operating instructions issued to the
states by the U.S. Department of Labor.
In the case of a state ending an EB
period, the State Workforce Agency will
furnish a written notice to each
individual who is currently filing a
claim for EB of the forthcoming end of
the EB period and its effect on the
individual’s rights to EB (20 CFR
615.13(c)(4)).
FOR FURTHER INFORMATION CONTACT:
Scott Gibbons, U.S. Department of
Labor, Employment and Training
Administration, Office of Workforce
Security, 200 Constitution Avenue,
NW., Frances Perkins Bldg., Room S–
4231, Washington, DC 20210, telephone
number (202) 693–3008 (this is not a
toll-free number) or by e-mail:
gibbons.scott@dol.gov.
Signed in Washington, DC, this 29th day of
September, 2008.
Brent R. Orrell,
Deputy Assistant Secretary of Labor for
Employment and Training.
[FR Doc. E8–23637 Filed 10–6–08; 8:45 am]
BILLING CODE 4510–FW–P

DEPARTMENT OF LABOR
DEPARTMENT OF LABOR

Employment and Training
Administration
Notice of a Change in Status of an
Extended Benefit (EB) Period for
Alaska
Employment and Training
Administration, Labor.
ACTION: Notice.
AGENCY:

SUMMARY: This notice announces a
change in benefit period eligibility
under the EB Program for Alaska.
The following change has occurred
since the publication of the last notice
regarding the State’s EB status:
• Based on data reported by the
Bureau of Labor Statistics on September
19, 2008, Alaska triggered ‘‘off’’ EB.
Alaska’s 3-month total unemployment
rate for June, July and August fell to

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Employment and Training
Administration
Notice of a Change in Status of an
Extended Benefit (EB) Period for North
Carolina
Employment and Training
Administration, Labor.
ACTION: Notice.
AGENCY:

SUMMARY: This notice announces a
change in benefit period eligibility
under the EB Program for North
Carolina.
The following change has occurred
since the publication of the last notice
regarding the State’s EB status:
• Based on data reported by the
Bureau of Labor Statistics on September
19, 2008, North Carolina’s 3-month

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