FR 2021-00696

The document at hand is a notice from the Department of Labor (DOL), specifically concerning their efforts to gather public input on an Information Collection Request (ICR) related to the Delinquent Filer Voluntary Compliance Program. This occurs as part of a review process mandated by the Paperwork Reduction Act of 1995 and is being submitted to the Office of Management and Budget (OMB) for approval. The central focus of the program is to provide plan administrators a degree of leniency through reduced penalties, should they willingly comply with the annual reporting obligations outlined under the Employee Retirement Income Security Act of 1974 (ERISA).

General Overview

This notice announces an open call for comments from the public regarding the necessity and utility of the proposed information collection. The invitation to comment is engaging businesses and not-for-profit institutions who are directly affected by these regulatory requirements. The Department is seeking authorization to collect this data for a period of three years, addressing compliance issues under ERISA. These responses serve not only to improve regulatory outcomes but also to ensure that administrative activities are appropriately assessed and modified if needed.

Significant Issues and Concerns

Several issues emerge upon reviewing this document. Key among them is the lack of detail concerning the calculation of burden – both in terms of time and costs – associated with this information collection. An annual time burden of 518 hours is mentioned, but the methodologies behind this estimate are not disclosed, generating uncertainty about its accuracy and fairness. Similarly, an outlined cost burden of $778,718 is also not broken down, making it challenging to verify whether these expenses are justified or proportionate.

Furthermore, the document references various regulatory specifics, such as those codified in "29 CFR part 2520," which may obscure understanding for laypersons not versed in legal jargon. The lack of detailed explanation or easier-to-digest context leaves room for confusion among affected parties.

The notice also limits its discussion to compliance rather than explicating how data collected will directly benefit DOL programs or improve agency functions, potentially dampening public engagement. Additionally, while contact methods are provided, the absence of clarity on office hours or expected response times could hinder effective communication for those seeking further information.

Impact on the Public and Stakeholders

For the public, especially those managing or contributing to employee benefit plans, this notice represents a regulatory checkpoint. On one hand, it offers plan administrators a route to rectify past non-compliance with lesser penalties—a potential positive outcome for those looking to align with regulatory standards. However, without transparency regarding the estimation processes of associated burdens, these entities might feel ill-equipped to engage effectively during the commentary period.

This document primarily impacts businesses and not-for-profit institutions involved in retirement and welfare planning, positioning them as both stakeholders and primary respondents. While the structure of voluntary compliance could lessen the financial strain of non-compliance penalties, it simultaneously imposes an administrative burden to furnish the required data accurately and on time. For these groups, understanding and adapting to the compliance expectations laid out in ERISA remains a critical concern.

In conclusion, the document calls for a careful balancing act from stakeholders, advocating for transparency and comprehensive explanation from regulatory bodies, while guiding respondents to engage meaningfully in the commentary process to ensure their concerns are heard and addressed.

In the Federal Register document titled "Agency Information Collection Activities; Submission for OMB Review; Comment Request; Delinquent Filer Voluntary Compliance Program," financial information is primarily centered around the Total Estimated Annual Other Costs Burden of $778,718. This estimate appears in the section detailing the burdens associated with the information collection process related to the Delinquent Filer Voluntary Compliance Program under the Department of Labor's Employee Benefits Security Administration (EBSA).

The document's reference to $778,718 represents the financial burden on entities required to comply with the information collection requirements. However, the document does not provide details or a breakdown of how this amount was computed or what specific aspects contribute to this cost. This lack of clarity could be challenging for stakeholders attempting to understand whether the cost is fair or reasonable. Without further explanation, it is difficult to ascertain what expenses may be compensated beyond direct compliance-related actions, such as administrative or reporting costs.

Additionally, the document estimates an annual time burden of 518 hours, but similarly, it does not provide insight into the distribution of this time burden across the estimated 10,350 respondents. This lack of specificity raises questions about individual and collective burdens placed on different respondents, especially considering that the total financial cost might vary substantially according to the time invested in compliance activities. Without a clear financial breakdown, there is less transparency regarding how funds are allocated or spent by responding entities.

Overall, the commentary highlights the need for greater specificity in financial references within government notices to enhance understanding and evaluation by the public and relevant stakeholders. Providing more detailed cost analysis could facilitate more informed public comments and improve overall confidence in the financial figures presented.