PBGC Adjusts Civil Penalties

The Pension Benefit Guaranty Corporation (PBGC) has issued a final rule adjusting civil penalties for failure to provide certain notices or other material information and for failure to provide certain multiemployer plan notices. The PBGC is required to amend its regulations annually to adjust those penalties for inflation. 

This rule adjusts the maximum civil penalties that the PBGC may assess under Sections 4071 and 4302 of ERISA. The new maximum amounts are:

• $2,259 for Section 4071 penalties; and 
• $301 for Section 4302 penalties.

Both penalties are higher than those announced in 2020:

   
This rule is effective Jan. 13, 2021. The increases in the civil monetary penalties provided for in this rule apply to such penalties assessed after that date.