DOL Proposed Regulations On Penalties for Underfunded Multiemployer Plans

The Department of Labor has issued proposed regulations governing the determination of the maximum penalties under Section 502(c)(8) with respect to certain underfunded multiemployer pension plans.

Document Excerpt

SUMMARY: This document contains a proposed regulation that, upon adoption, would establish procedures relating to the assessment of civil penalties by the Department of Labor under section 502(c)(8) of the Employee Retirement Income Security Act of 1974 (ERISA or the Act). Under section 502(c)(8) of ERISA, which was added by the Pension Protection Act of 2006, the Secretary of Labor is granted authority to assess civil penalties not to exceed $1,100 per day against any plan sponsor of a multiemployer plan for certain violations of section 305 of ERISA. The regulation would affect multiemployer plans that are in
either endangered or critical status.

Link http://www.dol.gov/federalregister/HtmlDisplay.aspx?DocId=23089&AgencyId=8&DocumentType=1

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