Penalties

Pension Benefit Guaranty Corporation 75-11 Janua ry 14, 1975 RE FERENCE: [*1] 4 007(b) Payment of Premiums. Penalties and Interest OP INION: Th is is in response to your letter of December 16, 1974. In t hat letter you requested a 60 day waiver of interest andpen alty charg es for failure to pay first full plan year premiums when due under Section 4007(a) of the EmployeeRetire ment Income Security Act of 1974 (hereinafter the "Act"). Th is Corporation i s not authorized to waive interes t charges on late payments. Under the circumstances, however,no p enalty will be imposed if you mail the premium payments within sixty days of the due date. Since your reque st relat es to plan years beginning January 1, 1975, and since premiums "are due within 30 days aftersuch plan Y ear(s) commence", Act, Section 4007(a), your premium declaration and payment must be mailed on or before March 31, 1 975 in order to avoid late payment char ges. Interest will accrue from January 31, 1975 and should beinclud ed with your payment. I trust this answ ers your inquiry. George B . Driesen De puty General Counsel