The Pension Benefit Guaranty Corp. (PBGC) proposed a
statement of policy that would revise the structure of penalties
assessed against pension plan administrators who fail to notify
participants of underfunding and of the extent to which the PBGC would
compensate for such deficiencies (
www.pbgc.gov/regs ). Under the suggested statement, penalties
would be based on the number of plan participants rather than on the
number of days delinquent, as currently required. The recommended
policy also would provide for a more rigorous audit program, coupled
with stricter enforcement and significantly higher penalties for
repeated noncompliance. Comments are due July 6.
Pensions
