DOL Proposed Regulation – Civil Penalties Under ERISA Section 502(c)(4)

29 CFR Part 2560

RIN 1210-AB24

DOL Proposed Regulation – Civil Penalties Under ERISA Section 502(c)(4)

The DOL announced a proposed regulation for "assessing civil penalties against plan administrators who fail to disclose certain documents to participants, beneficiaries and others as required by the Employee Retirement Income Security Act, as amended by the Pension Protection Act (PPA)":

"The PPA established new disclosure provisions relating to: funding-based limits on benefit accruals and certain forms of benefit distributions; plan actuarial and financial reports; withdrawal liability of contributing employers; and participants' rights and obligations under automatic contribution arrangements. The PPA gives the department authority to assess civil monetary penalties of up to $1,000 per day against plan administrators for violations of the new disclosure requirements. The proposed regulation sets forth the administrative procedures for assessing and contesting such penalties and does not address substantive provisions of the new
disclosure requirements."

Related Links:

• News Release
• DOL Proposed Regulation – Civil Penalties Under ERISA Section 502(c)(4) (December 19, 2007) [HTML]
• DOL Proposed Regulation – Civil Penalties Under ERISA Section 502(c)(4) (December 19, 2007) [PDF]

• Proposed regs issued on civil penalties for noncompliance with ERISA disclosure rules
• DOL proposes protocol to assess penalties on failed disclosures
• Plans to Be Fined on Disclosure Issues