The Pension Benefit Guaranty Corporation (PBGC) has issued new maximum civil penalties that it can assess for failure to provide certain notices or other material information and for failure to provide certain multiemployer plan notices.
The new maximum amounts are $2,194 for section 4071 penalties and $292 for section 4302 penalties. They go into effect on Dec. 28, 2018.
The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 requires agencies to adjust civil monetary penalties for inflation and to publish the adjustments in the Federal Register. An initial adjustment was required to be made by interim final rule published by July 1, 2016, and effective by August 1, 2016. Subsequent adjustments must be published by Jan. 15 each year after 2016.
On Dec. 14, 2018, the Office of Management and Budget issued a memorandum that provides agencies with the cost-of-living adjustment multiplier for 2019, which is based on the Consumer Price Index (CPI-U) for the month of October 2018. The multiplier for 2019 is 1.02522. The adjusted maximum amounts are $2,194 for Section 4071 penalties and $292 for Section 4302 penalties.
The PBGC is required to make such adjustments under Sections 4071 and 4302 of ERISA.
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