Penalty for failure to file complete annual report runs from report's due date, not date DOL notified sponsor of reporting deficiencies

Article Abstract:

US Pension and Welfare Benefits Administration Senior Policy Advisor Morton Klevan has determined that it was appropriate for the US Dept of Labor (DOL) to levy penalties against a plan administrator beginning on the date when the administrator failed to file required reports. The employer administered three welfare plans but failed to file qualified public accountant's reports. An administrative judge found that the DOL penalties should not be assessed based on the filing dates because of DOL inaction and the employer's reliance, but Klevan reversed that decision.

Accounting and auditing, Pension funds

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PBGC issues policy statement on penalty assessment

Article Abstract:

The Pension Benefit Guaranty Corp (PBGC) has provided a policy statement on penalty assessment against people not providing a notice or other pertinent information mandated by law. The power to penalize comes from ERISA section 4071 and the penalty for noncompliance can amount to no more than $1,000 per day. Factors influencing the amount of the penalty include the extent of and wilfulness of the noncompliance, the harm to the agency's program and the probability of the penalty being paid.

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PBGC may be sued for breach of fiduciary duty while acting as trustee for financially troubled pension plans

Article Abstract:

The US District Court for Southern New York held that the Pension Benefit Guaranty Corp. (PBGC) was properly sued for breach of fiduciary duty for its handling of a pension plan for which it acted as trustee under the authority of ERISA . The class action suit filed by Pan American World Airways pension plan participants was allowed to go ahead on the claim that the PBGC delayed benefit calculations.

United States, Employee Benefits & Services, Standards, Management, Cases, Human resource management, Employee benefits, Trusts and trustees, Trustees, Trusts (Law), Fiduciary duties

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