PBGC Proposes Broader Guidance on Assessment and Review of Penalties
FOR IMMEDIATE RELEASE
January 11, 2001
The Pension Benefit Guaranty Corporation (PBGC) today announced a proposed rule that would expand and clarify existing PBGC policies on assessing and waiving premium and information penalties.
"This proposal is part of our ongoing effort to clarify rules and ease the compliance burden on pension practitioners," said PBGC Executive Director David M. Strauss.
Under the proposed rule, PBGC would add an appendix to its regulation governing penalties for not making premium payments on time and an appendix to its regulation governing penalties for not providing required information on time. The appendices, written in question-and-answer format, would expand and clarify the agency's existing policies on premium and information penalties, including examples of what constitutes reasonable cause for waiving penalties.
Comments on the proposal, which will appear in the Federal Register on January 12, 2001, must be received by March 13, 2001, and may be sent by Internet e-mail to firstname.lastname@example.org.
PBGC is a federal corporation created under the Employee Retirement Income Security Act of 1974 to guarantee payment of basic pension benefits earned by about 43 million American workers and retirees participating in nearly 40,000 private-sector defined benefit pension plans. The agency receives no funds from general tax revenues. Operations are financed largely by insurance premiums paid by companies that sponsor pension plans and investment returns.
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PBGC No. 01-17