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Employee Benefits Security Administration

EBSA Federal Register Notice

Proposed Extension of Information Collection Request Submitted for Public Comment; Prohibited Transaction Class Exemption 91-55-- Transactions Between Individual Retirement Accounts and Authorized Purchasers of American Eagle Coins [04/09/2007]

[PDF Version]

Volume 72, Number 67, Page 17586-17587

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DEPARTMENT OF LABOR

Employee Benefits Security Administration

 
Proposed Extension of Information Collection Request Submitted 
for Public Comment; Prohibited Transaction Class Exemption 91-55--
Transactions Between Individual Retirement Accounts and Authorized 
Purchasers of American Eagle Coins

AGENCY: Employee Benefits Security Administration, Department of Labor.

ACTION: Notice.

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SUMMARY: The Department of Labor (the Department), in accordance with 
the Paperwork Reduction Act of 1995 (PRA 95) (44 U.S.C. 3506(c)(2)(A)), 
provides the general public and Federal agencies with an opportunity to 
comment on proposed and continuing collections of information. This 
helps the Department assess the impact of its information collection 
requirements and minimize the reporting burden on the public and helps 
the public understand the Department's information collection 
requirements and provide the requested data in the desired format. 
Currently, the Employee Benefits Security Administration is soliciting 
comments on the proposed extension of the information collection 
provisions of Prohibited Transaction Class Exemption 91-55. A copy of 
the information collection request (ICR) may be obtained by contacting 
the office listed in the ADDRESSES section of this notice.

DATES: Written comments must be submitted to the office shown in the 
Addresses section on or before June 8, 2007.

ADDRESSES: Joseph S. Piacentini, Department of Labor, Employee Benefits 
Security Administration, 200 Constitution Avenue, NW., Washington, DC 
20210, (202) 693-8410, FAX (202) 693-4745 (these are not toll-free 
numbers).

SUPPLEMENTARY INFORMATION:

I. Background

    Prohibited Transaction Exemption 91-55 permits purchases and sales 
by certain ``individual retirement accounts,'' as defined in Internal 
Revenue Code section 408 (IRAs) of American Eagle bullion coins 
(``Coins'')

[[Page 17587]]

in principal transactions from or to broker-dealers in Coins that are 
``authorized purchasers'' of Coins in bulk quantities from the United 
States Mint and which are also ``disqualified persons,'' within the 
meaning of Code section 4975(e)(2), with respect to IRAs. The exemption 
also describes the circumstances under which an interest-free extension 
of credit in connection with such sales and purchases is permitted. In 
the absence of an exemption, such purchases and sales and extensions of 
credit would be impermissible under the Employee Retirement Income 
Security Act of 1974 (ERISA).
    Among other conditions, the exemption requires certain information 
related to covered transactions in Coins must be disclosed by the 
authorized purchaser to persons who direct the transaction for the IRA. 
Currently, it is standard industry practice that most of this 
information is provided to persons directing investments in an IRA when 
transactions in Coins occur. The exemption also requires that the 
disqualified person maintain for a period of at least six years such 
records as are necessary to allow accredited persons, as defined in the 
exemption, to determine whether the conditions of the transaction have 
been met. Finally, an authorized purchaser must provide a confirmation 
statement with respect to each covered transaction to the person who 
directs the transaction for the IRA. The requirements constitute 
information collections within the meaning of the PRA, for which the 
Department has obtained approval from the Office of Management and 
Budget (OMB) under OMB Control No. 1210-0079. The OMB approval is 
currently scheduled to expire on July 31, 2007.
    The recordkeeping requirement facilitates the Department's ability 
to make findings under section 408 of ERISA and section 4975(c) of the 
Code. The confirmation and disclosure requirements protect a 
participant or beneficiary who invests in IRAs and transacts in Coins 
with authorized purchasers by providing the investor or the person 
directing his or her investments with timely information about the 
market in Coins and about the individual's account in particular.

II. Current Actions

    This notice requests public comment pertaining to the Department's 
request for extension of OMB approval of the information collection 
contained in PTE 91-55. After considering comments received in response 
to this notice, the Department intends to submit an ICR to OMB for 
continuing approval. No change to the existing ICR is proposed or made 
at this time. An agency may not conduct or sponsor, and a person is not 
required to respond to, an information collection unless it displays a 
valid OMB control number. A summary of the ICR and the current burden 
estimates follows:
    Agency: Employee Benefits Security Administration, Department of 
Labor.
    Title: Prohibited Transaction Class Exemption 91-55.
    Type of Review: Extension of a currently approved collection of 
information.
    OMB Number: 1210-0079.
    Affected Public: Individuals or households; Business or other for-
profit; Not-for-profit institutions.
    Respondents: 2.
    Responses: 12,800.
    Frequency: On occasion.
    Estimated Total Burden Hours: 554 hours.
    Estimated Total Burden Cost: $0.

III. Focus of Comments

    The Department of Labor (Department) is particularly interested in 
comments that:
     Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
     Evaluate the accuracy of the agency's estimate of the 
burden of the proposed collection of information, including the 
validity of the methodology and assumptions used;
     Enhance the quality, utility, and clarity of the 
information to be collected; and
     Minimize the burden of the collection of information on 
those who are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology, e.g., by 
permitting electronic submissions of responses.
    Comments submitted in response to this notice will be summarized 
and/or included in the ICR for OMB approval of the extension of the 
information collection; they will also become a matter of public 
record.

    Dated: April 3, 2007.
Bradford P. Campbell,
Acting Assistant Secretary, Employee Benefits Security Administration.
[FR Doc. E7-6552 Filed 4-6-07; 8:45 am]

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