82 FR 8813 - Adjustment of Civil Penalties

PENSION BENEFIT GUARANTY CORPORATION

Federal Register Volume 82, Issue 19 (January 31, 2017)

Page Range		8813-8814
FR Document		2017-01074

The Pension Benefit Guaranty Corporation is required to amend its regulations annually to adjust the penalties provided for in sections 4071 and 4302 of the Employee Retirement Income Security Act of 1974. This action is being taken in accordance with the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 and Office of Management and Budget memorandum M-17-11. The regulations being amended are those on Penalties for Failure to Provide Certain Notices or Other Material Information and Penalties for Failure to Provide Certain Multiemployer Plan Notices.

Federal Register, Volume 82 Issue 19 (Tuesday, January 31, 2017)

[Federal Register Volume 82, Number 19 (Tuesday, January 31, 2017)]
[Rules and Regulations]
[Pages 8813-8814]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-01074]


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PENSION BENEFIT GUARANTY CORPORATION

29 CFR Parts 4071 and 4302

RIN 1212-AB33


Adjustment of Civil Penalties

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Final rule.

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SUMMARY: The Pension Benefit Guaranty Corporation is required to amend 
its regulations annually to adjust the penalties provided for in 
sections 4071 and 4302 of the Employee Retirement Income Security Act 
of 1974. This action is being taken in accordance with the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 and 
Office of Management and Budget memorandum M-17-11. The regulations 
being amended are those on Penalties for Failure to Provide Certain 
Notices or Other Material Information and Penalties for Failure to 
Provide Certain Multiemployer Plan Notices.

DATES: Effective date: This rule is effective on January 31, 2017.
    Applicability date: The increases in the civil monetary penalties 
under sections 4071 and 4302 provided for in this rule apply to such 
penalties assessed after January 31, 2017.

FOR FURTHER INFORMATION CONTACT: Stephanie Cibinic, Deputy Assistant 
General Counsel for Regulatory Affairs ([email protected]), 
Office of the General Counsel, Pension Benefit Guaranty Corporation, 
1200 K Street NW., Washington, DC 20005-4026; 202-326-4400 extension 
6352. (TTY and TDD users may call the Federal relay service toll-free 
at 800-877-8339 and ask to be connected to 202-326-4400 extension 
6352.)

SUPPLEMENTARY INFORMATION: 

Executive Summary

Purpose of the Regulatory Action

    This rule is needed to carry out the requirements of the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015. The 
rule finalizes the 2016 interim final regulations required under the 
2015 act and further adjusts, as required for 2017, the maximum civil 
penalties that PBGC may assess for failure to provide certain notices 
or other material information.
    PBGC's legal authority for this action comes from the Federal Civil 
Penalties Inflation Adjustment Act of 1990 as amended by the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 and 
from sections 4002(b)(3), 4071, and 4302 of the

[[Page 8814]]

Employee Retirement Income Security Act of 1974.

Major Provisions of the Regulatory Action

    This rule adjusts as required by law the maximum civil penalties 
that PBGC may assess under sections 4071 and 4302 of ERISA. The new 
maximum amounts are $2,097 for section 4071 penalties and $279 for 
section 4302 penalties.

Background

    The Pension Benefit Guaranty Corporation (PBGC) administers title 
IV of the Employee Retirement Income Security Act of 1974 (ERISA). 
Title IV has two provisions that authorize PBGC to assess civil 
monetary penalties.\1\ Section 4302, added to ERISA by the 
Multiemployer Pension Plan Amendments Act of 1980, authorizes PBGC to 
assess a civil penalty of up to $100 a day for failure to provide a 
notice under subtitle E of title IV of ERISA (dealing with 
multiemployer plans). Section 4071, added to ERISA by the Omnibus 
Budget Reconciliation Act of 1987, authorizes PBGC to assess a civil 
penalty of up to $1,000 a day for failure to provide a notice or other 
material information under subtitles A, B, and C of title IV and 
sections 303(k)(4) and 306(g)(4) of title I of ERISA.
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    \1\ Under the Federal Civil Penalties Inflation Adjustment Act 
of 1990, a penalty is a civil monetary penalty if (among other 
things) it is for a specific monetary amount or has a maximum amount 
specified by Federal law. Title IV also provides (in section 4007) 
for penalties for late payment of premiums, but those penalties are 
neither in a specified amount nor subject to a specified maximum 
amount.
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Adjustment of Civil Penalties

    On November 2, 2015, the President signed into law the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015,\2\ 
which requires agencies to adjust civil monetary penalties for 
inflation and to publish the adjustments in the Federal Register. An 
initial adjustment was required to be made by interim final rule 
published by July 1, 2016, and effective by August 1, 2016. Subsequent 
adjustments must be promulgated in January each year after 2016. In an 
interim final rule published on May 13, 2016 (at 81 FR 29765), PBGC 
adjusted the maximum penalty under section 4071 to $2,063 and adjusted 
the maximum penalty under section 4302 to $275.\3\
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    \2\ Sec. 701, Public Law 114-74, 129 Stat. 599-601 (Bipartisan 
Budget Act of 2015).
    \3\ The Office of Management and Budget issued memorandum M-16-
06 on implementation of the 2015 act, including multipliers to use 
in the initial adjustment.
---------------------------------------------------------------------------

    On December 16, 2016, the Office of Management and Budget issued 
memorandum M-17-11 on implementation of the 2017 annual adjustment 
pursuant to the 2015 act.\4\ The memorandum provides agencies with the 
cost-of-living adjustment multiplier for 2017, which is based on the 
Consumer Price Index (CPI-U) for the month of October 2016, not 
seasonally adjusted. The multiplier for 2017 is 1.01636. The memorandum 
also provides guidance to agencies on finalizing their 2016 interim 
final rules. Accordingly, PBGC is adopting the 2016 interim final rule 
with a change to the maximum penalty amount for 2017 as required by the 
2015 act and Office of Management and Budget memorandum M-17-11. The 
adjusted maximum amounts are $2,097 for section 4071 penalties and $279 
for section 4302 penalties.
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    \4\ https://www.whitehouse.gov/sites/default/files/omb/memoranda/2017/m-17-11_0.pdf.
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Compliance With Regulatory Requirements

    The Office of Management and Budget has determined that this rule 
is not a ``significant regulatory action'' under Executive Order 12866 
and therefore not subject to their review.
    The Office of Management and Budget also has determined that notice 
and public comment on this final rule are unnecessary because the 
adjustment of civil penalties implemented in the rule is required by 
law. See 5 U.S.C. 553(b).
    Because no general notice of proposed rulemaking is required for 
this rule, the Regulatory Flexibility Act of 1980 does not apply. See 5 
U.S.C. 601(2).

List of Subjects

29 CFR Part 4071

    Penalties.

29 CFR Part 4302

    Penalties.

    In consideration of the foregoing, the interim final rule, which 
was published at 81 FR 29765 on May 13, 2016, is adopted as a final 
rule with the following changes:

PART 4071--PENALTIES FOR FAILURE TO PROVIDE CERTAIN NOTICES OR 
OTHER MATERIAL INFORMATION

0
1. The authority citation for part 4071 continues to read as follows:

    Authority:  28 U.S.C. 2461 note, as amended by sec. 701, Pub. L. 
114-74, 129 Stat. 599-601; 29 U.S.C. 1302(b)(3), 1371.


Sec.  4071.3   [Amended]

0
2. In Sec.  4071.3, the figures ``; $2,063'' are removed and the 
figures ``$2,097'' are added in their place.

PART 4302--PENALTIES FOR FAILURE TO PROVIDE CERTAIN MULTIEMPLOYER 
PLAN NOTICES

0
3. The authority citation for part 4302 continues to read as follows:

    Authority:  28 U.S.C. 2461 note, as amended by sec. 701, Pub. L. 
114-74, 129 Stat. 599-601; 29 U.S.C. 1302(b)(3), 1452.


Sec.  4302.3  [Amended]

0
4. In Sec.  4302.3, the figures ``$275'' are removed and the figures 
``$279'' are added in their place.

    Issued in Washington, DC.
W. Thomas Reeder,
Director, Pension Benefit Guaranty Corporation.
[FR Doc. 2017-01074 Filed 1-30-17; 8:45 am]
 BILLING CODE 7709-02-P

Federal Register / Vol. 82, No. 19 / Tuesday, January 31, 2017 / Rules and Regulations 8813

Executive Order 13563 and 12866 in any one year, and it will not PENSION BENEFIT GUARANTY
In promulgating this final rule, EEOC significantly or uniquely affect small CORPORATION
has adhered to the regulatory governments. Therefore, no actions were
deemed necessary under the provisions 29 CFR Parts 4071 and 4302
philosophy and applicable principles
set forth in Executive Order 13563. of the Unfunded Mandates Reform Act RIN 1212–AB33
Pursuant to Executive Order 12866, the of 1995.
EEOC has coordinated with the Office of Adjustment of Civil Penalties
Congressional Review Act
Management and Budget (OMB). Under AGENCY: Pension Benefit Guaranty
section 3(f) of Executive Order 12866, The Congressional Review Act (CRA) Corporation.
the EEOC and OMB have determined requires that before a rule may take ACTION: Final rule.
that this final rule will not have an effect, the agency promulgating the rule
annual effect on the economy of $100 must submit a rule report, which SUMMARY: The Pension Benefit Guaranty
million or more, or adversely affect in includes a copy of the rule, to each Corporation is required to amend its
a material way the economy, a sector of House of the Congress and to the regulations annually to adjust the
the economy, productivity, competition, Comptroller General of the United penalties provided for in sections 4071
jobs, the environment, public health or States. EEOC will submit a report and 4302 of the Employee Retirement
safety, or state, local, or tribal containing this rule and other required Income Security Act of 1974. This
governments or communities. The great action is being taken in accordance with
information to the U.S. Senate, the U.S.
majority of employers and entities the Federal Civil Penalties Inflation
House of Representatives, and the
covered by these regulations comply Adjustment Act Improvements Act of
Comptroller General of the United
with the posting requirement, and, as a 2015 and Office of Management and
result, the aggregate economic impact of States prior to the effective date of the
Budget memorandum M–17–11. The
these revised regulations will be rule. Under the CRA, a major rule
regulations being amended are those on
minimal, affecting only those limited cannot take effect until 60 days after it Penalties for Failure to Provide Certain
few who fail to post required notices in is published in the Federal Register. Notices or Other Material Information
violation of the regulation and statute. This action is not a ‘‘major rule’’ as and Penalties for Failure to Provide
The rule only increases the penalty by defined by the CRA at 5 U.S.C. 804(2). Certain Multiemployer Plan Notices.
$9 for each separate offense, nowhere List of Subjects in 29 CFR Part 1601 DATES: Effective date: This rule is
near the $100 million figure that would effective on January 31, 2017.
amount to a significant regulatory Administrative practice and Applicability date: The increases in
action.1 procedure. the civil monetary penalties under
Paperwork Reduction Act For the Commission. sections 4071 and 4302 provided for in
this rule apply to such penalties
The Paperwork Reduction Act (44 Dated: January 13, 2017.
assessed after January 31, 2017.
U.S.C. chapter 35) (PRA) applies to Jenny R. Yang,
FOR FURTHER INFORMATION CONTACT:
rulemakings in which an agency creates Chair. Stephanie Cibinic, Deputy Assistant
a new paperwork burden on regulated General Counsel for Regulatory Affairs
entities or modifies an existing burden. Accordingly, the Equal Employment
(cibinic.stephanie@pbgc.gov), Office of
This final rule contains no new Opportunity Commission amends 29
the General Counsel, Pension Benefit
information collection requirements, CFR part 1601 as follows:
Guaranty Corporation, 1200 K Street
and therefore, will create no new NW., Washington, DC 20005–4026; 202–
paperwork burdens or modifications to PART 1601—PROCEDURAL
REGULATIONS 326–4400 extension 6352. (TTY and
existing burdens that are subject to TDD users may call the Federal relay
review by the Office of Management and service toll-free at 800–877–8339 and
Budget under the PRA. ■ 1. The authority citation for part 1601
ask to be connected to 202–326–4400
continues to read as follows: extension 6352.)
Regulatory Flexibility Act
Authority: 42 U.S.C. 2000e to 2000e–17; SUPPLEMENTARY INFORMATION:
The Regulatory Flexibility Act (5
42 U.S.C. 12111 to 12117; 42 U.S.C. 2000ff
U.S.C. 601–612) only requires a Executive Summary
to 2000ff–11.
regulatory flexibility analysis when
notice and comment is required by the Purpose of the Regulatory Action
■ 2. Section 1601.30 is amended by
Administrative Procedure Act or some revising paragraph (b) to read as follows: This rule is needed to carry out the
other statute. As stated above, notice requirements of the Federal Civil
and comment is not required for this § 1601.30 Notices to be posted. Penalties Inflation Adjustment Act
rule. For that reason, the requirements * * * * * Improvements Act of 2015. The rule
of the Regulatory Flexibility Act do not finalizes the 2016 interim final
(b) Section 711(b) of Title VII and the
apply. regulations required under the 2015 act
Federal Civil Penalties Inflation
Unfunded Mandates Reform Act of 1995 and further adjusts, as required for 2017,
Adjustment Act, as amended, make
the maximum civil penalties that PBGC
This final rule will not result in the failure to comply with this section may assess for failure to provide certain
asabaliauskas on DSK3SPTVN1PROD with RULES

expenditure by State, local, or tribal punishable by a fine of not more than notices or other material information.
governments, in the aggregate, or by the $534 for each separate offense. PBGC’s legal authority for this action
private sector, of $100 million or more [FR Doc. 2017–01277 Filed 1–30–17; 8:45 am] comes from the Federal Civil Penalties
BILLING CODE 6570–01–P Inflation Adjustment Act of 1990 as
1 In the last ten years, the highest number of amended by the Federal Civil Penalties
charges alleging notice posting violations occurred
in 2010. In that year, only 114 charges of the 90,837
Inflation Adjustment Act Improvements
Title VII, ADA, and GINA charges (.13%) contained Act of 2015 and from sections
a notice posting violation. 4002(b)(3), 4071, and 4302 of the

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8814 Federal Register / Vol. 82, No. 19 / Tuesday, January 31, 2017 / Rules and Regulations

Employee Retirement Income Security On December 16, 2016, the Office of § 4071.3 [Amended]
Act of 1974. Management and Budget issued ■ 2. In § 4071.3, the figures ‘‘; $2,063’’
memorandum M–17–11 on are removed and the figures ‘‘$2,097’’
Major Provisions of the Regulatory
implementation of the 2017 annual are added in their place.
Action
adjustment pursuant to the 2015 act.4
This rule adjusts as required by law The memorandum provides agencies PART 4302—PENALTIES FOR
the maximum civil penalties that PBGC with the cost-of-living adjustment FAILURE TO PROVIDE CERTAIN
may assess under sections 4071 and multiplier for 2017, which is based on MULTIEMPLOYER PLAN NOTICES
4302 of ERISA. The new maximum the Consumer Price Index (CPI–U) for
amounts are $2,097 for section 4071 the month of October 2016, not ■ 3. The authority citation for part 4302
penalties and $279 for section 4302 seasonally adjusted. The multiplier for continues to read as follows:
penalties. 2017 is 1.01636. The memorandum also Authority: 28 U.S.C. 2461 note, as
Background provides guidance to agencies on amended by sec. 701, Pub. L. 114–74, 129
finalizing their 2016 interim final rules. Stat. 599–601; 29 U.S.C. 1302(b)(3), 1452.
The Pension Benefit Guaranty
Accordingly, PBGC is adopting the 2016 § 4302.3 [Amended]
Corporation (PBGC) administers title IV
interim final rule with a change to the
of the Employee Retirement Income ■ 4. In § 4302.3, the figures ‘‘$275’’ are
maximum penalty amount for 2017 as
Security Act of 1974 (ERISA). Title IV removed and the figures ‘‘$279’’ are
required by the 2015 act and Office of
has two provisions that authorize PBGC added in their place.
Management and Budget memorandum
to assess civil monetary penalties.1
M–17–11. The adjusted maximum Issued in Washington, DC.
Section 4302, added to ERISA by the
amounts are $2,097 for section 4071 W. Thomas Reeder,
Multiemployer Pension Plan
Amendments Act of 1980, authorizes penalties and $279 for section 4302 Director, Pension Benefit Guaranty
PBGC to assess a civil penalty of up to penalties. Corporation.
$100 a day for failure to provide a notice Compliance With Regulatory [FR Doc. 2017–01074 Filed 1–30–17; 8:45 am]
under subtitle E of title IV of ERISA Requirements BILLING CODE 7709–02–P
(dealing with multiemployer plans).
Section 4071, added to ERISA by the The Office of Management and Budget
Omnibus Budget Reconciliation Act of has determined that this rule is not a FEDERAL COMMUNICATIONS
1987, authorizes PBGC to assess a civil ‘‘significant regulatory action’’ under COMMISSION
penalty of up to $1,000 a day for failure Executive Order 12866 and therefore not
to provide a notice or other material subject to their review. 47 CFR Part 25
information under subtitles A, B, and C The Office of Management and Budget
[IB Docket No. 13–213; FCC 16–181]
of title IV and sections 303(k)(4) and also has determined that notice and
306(g)(4) of title I of ERISA. public comment on this final rule are Terrestrial Use of the 2473–2495 MHz
unnecessary because the adjustment of Band for Low-Power Mobile
Adjustment of Civil Penalties civil penalties implemented in the rule Broadband Networks; Amendments to
On November 2, 2015, the President is required by law. See 5 U.S.C. 553(b). Rules for the Ancillary Terrestrial
signed into law the Federal Civil Because no general notice of proposed Component of Mobile Satellite Service
Penalties Inflation Adjustment Act rulemaking is required for this rule, the Systems
Improvements Act of 2015,2 which Regulatory Flexibility Act of 1980 does
requires agencies to adjust civil not apply. See 5 U.S.C. 601(2). AGENCY: Federal Communications
monetary penalties for inflation and to Commission.
publish the adjustments in the Federal List of Subjects ACTION: Final rule.
Register. An initial adjustment was 29 CFR Part 4071
required to be made by interim final SUMMARY: In this document, the Federal
rule published by July 1, 2016, and Penalties. Communications Commission
effective by August 1, 2016. Subsequent (Commission or FCC) modifies its rules
29 CFR Part 4302
adjustments must be promulgated in on the operation of an Ancillary
January each year after 2016. In an Penalties. Terrestrial Component (ATC) for
interim final rule published on May 13, In consideration of the foregoing, the Mobile-Satellite Service (MSS) systems
2016 (at 81 FR 29765), PBGC adjusted interim final rule, which was published operating in the 2483.5–2495 MHz
the maximum penalty under section band. This action modifies, inter alia,
at 81 FR 29765 on May 13, 2016, is
4071 to $2,063 and adjusted the existing rules related to ‘‘gating criteria’’
adopted as a final rule with the
maximum penalty under section 4302 to for ATC in the 2483.5–2495 MHz band
following changes:
$275.3 to enable licensees to seek authorization
PART 4071—PENALTIES FOR to deploy a terrestrial low-power system
1 Under the Federal Civil Penalties Inflation FAILURE TO PROVIDE CERTAIN using licensed MSS spectrum. This
Adjustment Act of 1990, a penalty is a civil document will serve the public interest
monetary penalty if (among other things) it is for NOTICES OR OTHER MATERIAL
a specific monetary amount or has a maximum INFORMATION by expanding terrestrial use of the
amount specified by Federal law. Title IV also 2483.5–2495 MHz frequency band and
asabaliauskas on DSK3SPTVN1PROD with RULES

provides (in section 4007) for penalties for late establishing a framework that will
payment of premiums, but those penalties are
■ 1. The authority citation for part 4071
neither in a specified amount nor subject to a continues to read as follows: enable Globalstar, Inc. (Globalstar), the
specified maximum amount. sole MSS licensee in the band, to utilize
Authority: 28 U.S.C. 2461 note, as
2 Sec. 701, Public Law 114–74, 129 Stat. 599–601
amended by sec. 701, Pub. L. 114–74, 129
its 11.5 megahertz of spectrum to deploy
(Bipartisan Budget Act of 2015).
Stat. 599–601; 29 U.S.C. 1302(b)(3), 1371. a terrestrial low-power network.
3 The Office of Management and Budget issued
DATES: Effective March 2, 2017, except
memorandum M–16–06 on implementation of the
2015 act, including multipliers to use in the initial 4 https://www.whitehouse.gov/sites/default/files/ for the amendments to § 25.149, which
adjustment. omb/memoranda/2017/m-17-11_0.pdf. contain information collection

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Document Created: 2017-01-31 00:20:12
Document Modified: 2017-01-31 00:20:12

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Final rule.
Dates		Effective date: This rule is effective on January 31, 2017.
Contact		Stephanie Cibinic, Deputy Assistant General Counsel for Regulatory Affairs ([email protected]), Office of the General Counsel, Pension Benefit Guaranty Corporation, 1200 K Street NW., Washington, DC 20005-4026; 202-326-4400 extension 6352. (TTY and TDD users may call the Federal relay service toll-free at 800-877-8339 and ask to be connected to 202-326-4400 extension 6352.)
FR Citation		82 FR 8813
RIN Number		1212-AB33
CFR Citation		29 CFR 4071 29 CFR 4302