PBGC Adjusts Penalties for Reporting Failures
As required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, the Pension Benefit Guaranty Corporation (PBGC) is adjusting monetary penalties for failure to provide certain reporting.
Using a cost-of-living multiplier provided by the Office of Management and Budget, the new maximum penalty under Employee Retirement Income Security Act (ERISA) section 4071 for failure to provide certain notices or other material information is $2,097.
Under ERISA section 4302, for failure to provide certain multiemployer plan notices, the maximum penalty is now $279.
The final rule is effective January 31, 2017. Text of the rule is here.
« Gen Xers, Baby Boomers Feel Need to Save More for Retirement