From the PBGC today, “PBGC Proposes Expanded Enforcement for Failure to Inform Workers of Pension Underfunding“:
The Pension Benefit Guaranty Corporation (PBGC) today proposed an expanded enforcement program, including a new penalty structure, for administrators of underfunded pension plans who fail to inform participants of the plan’s funding status and PBGC’s guarantee limits. As a transition to this expanded enforcement program, the agency also announced a Voluntary Correction Program to encourage administrators to correct recent failures to issue underfunding notices to plan participants.
The proposal is here (pdf) and information regarding the Participant Notice Voluntary Correction Program is here (pdf). Also, more about Participant Notices here with further information pertaining to the announcement.
From Newsday.com, “Pension Insurer Proposes New Penalties“:
The government’s pension insurance program proposed a new penalty system for companies that fail to notify workers of underfunded retirement plans, tied to the number of participants instead of how late the notice. . . The new policy would impose a penalty of $5 per participant if the plan administrator issues the notice on or before it receives written notice of a possible audit from the pension insurer agency. Repeat violators would be charged $20 per participant. If an administrator issues a notice after receiving the agency’s written notice, the penalty would be $40 per participant and $100 per participant for repeat violators. However, if the plan administrator sends a notice within a year after the due date, the agency would prorate the penalty based on the number of days it was late.