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:
- $2,586 for Section 4071 penalties; and
- $345 for Section 4302 penalties.
Both penalties are higher than those announced in 2022. They increased from the previous year, but not as sharply as they did from 2021 to 2022.
Penalties
| Penalty | 2020 | 2021 | 2022 | 2023 |
| Section 4071 | $2,233 | $2,259 | $2,400 | $2,586 |
| Section 4302 | $297 | $301 | $320 | $345 |
Year-to-Year Change in Penalty
| Penalty | Change, 2020 to 2021 | Change, 2021 to 2022 | Change, 2022 to 2023 |
| Section 4071 | + $26 | + $141 | + $186 |
| Section 4302 | + $4 | + $19 | + $25 |
This rule is effective Jan. 12, 2023. The increases in the civil monetary penalties provided for in this rule apply to such penalties assessed after that date.
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