Notice2024-14249

Agency Information Collection Activities; Submission for OMB Review; Comment Request; Employee Retirement Income Security Act Section 408(b)(2) Regulation

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
June 28, 2024

Issuing agencies

Labor Department

Abstract

The Department of Labor (DOL) is submitting this Employee Benefits Security Administration (EBSA)-sponsored information collection request (ICR) to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act of 1995 (PRA). Public comments on the ICR are invited.

Full Text

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<title>Federal Register, Volume 89 Issue 125 (Friday, June 28, 2024)</title>
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[Federal Register Volume 89, Number 125 (Friday, June 28, 2024)]
[Notices]
[Pages 54069-54070]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-14249]


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DEPARTMENT OF LABOR


Agency Information Collection Activities; Submission for OMB 
Review; Comment Request; Employee Retirement Income Security Act 
Section 408(b)(2) Regulation

ACTION: Notice of availability; request for comments.

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SUMMARY: The Department of Labor (DOL) is submitting this Employee 
Benefits Security Administration (EBSA)-sponsored information 
collection request (ICR) to the Office of Management and Budget (OMB) 
for review and approval in accordance with the Paperwork Reduction Act 
of 1995 (PRA). Public comments on the ICR are invited.

DATES: The OMB will consider all written comments that the agency 
receives on or before July 29, 2024.

ADDRESSES: Written comments and recommendations for the proposed 
information collection should be sent within 30 days of publication of 
this notice to <a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a>. Find this particular 
information collection by selecting ``Currently under 30-day Review--
Open for Public Comments'' or by using the search function.

FOR FURTHER INFORMATION CONTACT: Michael Howell by telephone at 202-
693-6782, or by email at <a href="/cdn-cgi/l/email-protection#83c7cccfdcd3d1c2dcd3d6c1cfcac0c3e7ecefade4ecf5"><span class="__cf_email__" data-cfemail="de9a9192818e8c9f818e8b9c92979d9ebab1b2f0b9b1a8">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION: The prohibited transaction described in 
section 406(a)(1)(C) of ERISA generally prohibits the furnishing of 
goods, services, or facilities between a plan and a party in interest 
to the plan. Because ERISA defines any person furnishing services to 
the plan as a ``party in interest'' to the plan, a service relationship 
between a plan and a service provider would constitute a prohibited 
transaction under section 406(a)(1)(C) in the absence of relief. 
Section 408(b)(2) of ERISA provides relief, however, for service 
contracts or arrangements if the contract or arrangement is 
``reasonable,'' if the services are necessary for the establishment or 
operation of the plan, and if no more than ``reasonable'' compensation 
is paid for the services. The Department's final rule under ERISA 
section 408(b)(2) (29 CFR 2550.408b-2) requires reasonable contracts or 
arrangements between employee pension benefit plans and certain 
providers of services to such plans include specified information to 
assist plan fiduciaries in assessing the reasonableness of the 
compensation paid for services and the conflicts of interest that may 
affect a service provider's performance of services.
    The Department also issued a class prohibited transaction exemption 
as part of the 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 the regulation's disclosure 
requirements. The Department recognizes that a plan fiduciary may on 
occasion unknowingly enter into 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 
divulged the requisite information. If the requirements of the rule are 
not satisfied, a prohibited transaction occurs for both the service 
provider and the plan fiduciary, but for the availability of the class 
exemption. For additional substantive information about this ICR, see 
the related notice published in the Federal Register on February 5, 
2024 (89 FR 7732).
    Comments are invited on: (1) whether the collection of information 
is necessary for the proper performance of the functions of the 
Department, including whether the information will have practical 
utility; (2) the accuracy of the agency's estimates of the burden and 
cost of the collection of information,

[[Page 54070]]

including the validity of the methodology and assumptions used; (3) 
ways to enhance the quality, utility and clarity of the information 
collection; and (4) ways to minimize the burden of the collection of 
information on those who are to respond, including the use of automated 
collection techniques or other forms of information technology.
    This information collection is subject to the PRA. A Federal agency 
generally cannot conduct or sponsor a collection of information, and 
the public is generally not required to respond to an information 
collection, unless the OMB approves it and displays a currently valid 
OMB Control Number. In addition, notwithstanding any other provisions 
of law, no person shall generally be subject to penalty for failing to 
comply with a collection of information that does not display a valid 
OMB Control Number. See 5 CFR 1320.5(a) and 1320.6.
    DOL seeks PRA authorization for this information collection for 
three (3) years. OMB authorization for an ICR cannot be for more than 
three (3) years without renewal. The DOL notes that information 
collection requirements submitted to the OMB for existing ICRs receive 
a month-to-month extension while they undergo review.
    Agency: DOL-EBSA.
    Title of Collection: Employee Retirement Income Security Act 
Section 408(b)(2) Regulation.
    OMB Control Number: 1210-0133.
    Affected Public: Private sector, Business or other for profits.
    Total Estimated Number of Respondents: 119,686.
    Total Estimated Number of Responses: 1,877,576.
    Total Estimated Annual Time Burden: 1,281,731 hours.
    Total Estimated Annual Other Costs Burden: $183,826.

(Authority: 44 U.S.C. 3507(a)(1)(D))

Michael Howell,
Senior Paperwork Reduction Act Analyst.
[FR Doc. 2024-14249 Filed 6-27-24; 8:45 am]
BILLING CODE 4510-29-P


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Indexed from Federal Register on June 28, 2024.

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