Government Affairs
The Pension Benefit Guaranty Corporation (PBGC) has updated the maximum civil penalty for failure to provide certain notices and forms of information and for failure to provide certain multiemployer plan notices.
The final rule adjusts the maximum civil penalties that PBGC may assess under Sections 4071 and 4302 of ERISA. On Dec. 16, 2019, the Office of Management and Budget issued memorandum M-20-05 on implementation of the 2020 annual inflation adjustment pursuant to the 2015 act. It provides agencies with the cost-of-living adjustment multiplier for 2020, which is based on the Consumer Price Index (CPI-U) for the month of October 2019, not seasonally adjusted. The multiplier for 2020 is 1.01764.
The new maximum amounts are:
- $2,233 for penalties imposed under Section 4071, up from $2,194 in 2019
- $297 for penalties imposed under Section 4302, up from $292 in 2019
The PBGC is required to make such adjustments annually by Jan. 15 of each year.
- Log in to post comments