The Pension Benefit Guaranty Corporation (PBGC) on May 13 issued an interim rule amending its regulations to significantly raise the per-day penalties under ERISA for failing to give proper notice.
The new maximum amounts are $2,063 per day for civil penalties imposed under ERISA Section 4071 (nearly double the current $1,100-per-day penalty) and $275 for civil penalties imposed under ERISA Section 4302 (more than double the current $110-per-day penalty).
The increases take effect Aug. 1, 2016.
The new maximum amounts are $2,063 per day for civil penalties imposed under ERISA Section 4071 (nearly double the current $1,100-per-day penalty) and $275 for civil penalties imposed under ERISA Section 4302 (more than double the current $110-per-day penalty).
The increases take effect Aug. 1, 2016.
On Nov. 2, 2015, President Obama signed into law the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, which requires federal agencies to adjust civil monetary penalties for inflation and to publish the adjustments in the Federal Register. The agencies must make an initial adjustment by interim final rule published by July 1, 2016, and effective by Aug. 1, 2016. Subsequent adjustments must be promulgated by Jan. 15 of each year after 2016 and must be based on changes in the Consumer Price Index.
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