The U.S. Department of Labor (DOL) has issued a proposed regulation for assessing fines against plan administrators who fail to disclose certain documents to participants, beneficiaries, and others as required by the Pension Protection Act (PPA), which amended the Employee Retirement Income Security Act.
The PPA gives the DOL authority to assess fines of up to $1,000 per day against plan administrators for violations of various disclosure requirements, including those 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.
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The proposed regulation sets out administrative procedures for assessing and contesting these penalties. For more information, including directions on how to submit a comment on the proposal, click here.
Additional Resources:
U.S. Department of Labor, Employee Benefits Security Administration