83 FR 1555 - Adjustment of Civil Penalties for Inflation

PENSION BENEFIT GUARANTY CORPORATION

Federal Register Volume 83, Issue 9 (January 12, 2018)

Page Range		1555-1556
FR Document		2018-00406

The Pension Benefit Guaranty Corporation is required to amend its regulations annually to adjust for inflation the maximum civil penalty for failure to provide certain notices or other material information and for failure to provide certain multiemployer plan notices.

Federal Register, Volume 83 Issue 9 (Friday, January 12, 2018)

[Federal Register Volume 83, Number 9 (Friday, January 12, 2018)]
[Rules and Regulations]
[Pages 1555-1556]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-00406]


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PENSION BENEFIT GUARANTY CORPORATION

29 CFR Parts 4071 and 4302

RIN 1212-AB45


Adjustment of Civil Penalties for Inflation

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 for inflation the maximum civil 
penalty for failure to provide certain notices or other material 
information and for failure to provide certain multiemployer plan 
notices.

DATES: Effective date: This rule is effective on January 12, 2018.
    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 12, 2018.

FOR FURTHER INFORMATION CONTACT: Stephanie Cibinic, Deputy Assistant 
General Counsel for Regulatory Affairs (cibinic.stephanie@pbgc.gov), 
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 and 
Office of Management and Budget guidance M-18-03. The rule adjusts, as 
required for 2018, the maximum civil penalties under 29 CFR part 4071 
and 29 CFR part 4302 that PBGC may assess for failure to provide 
certain notices or other material information and certain multiemployer 
plan notices.
    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 Employee Retirement 
Income Security Act of 1974 (ERISA).

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 $2,140 for section 4071 penalties and $285 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\ In a final rule 
published on January 31, 2017 (at 82 FR 8813), PBGC finalized its 
interim final rule and adjusted the maximum penalty under section 4071 
to $2,097 and the maximum penalty under section 4302 to $279.\4\
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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.
    \4\ The Office of Management and Budget issued memorandum M-17-
11 on December 16, 2016, on implementation of the 2015 act, 
including the cost-of-living adjustment multiplier for 2017.
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    On December 15, 2017, the Office of Management and Budget issued 
memorandum M-18-03 on implementation of the 2018 annual inflation 
adjustment pursuant to the 2015 act.\5\ The memorandum provides 
agencies with the cost-of-living adjustment multiplier for 2018, which 
is based on the Consumer Price Index (CPI-U) for the month of October 
2017, not seasonally adjusted. The multiplier for 2018 is 1.02041. The 
adjusted maximum amounts are $2,140 for section 4071 penalties and $285 
for section 4302 penalties.
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    \5\ https://www.whitehouse.gov/wp-content/uploads/2017/11/M-18-03.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. As this is not a significant 
regulatory action under E.O. 12866, it is not considered an E.O. 13771 
regulatory action.
    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, PBGC amends 29 CFR parts 4071 
and 4302 as follows:

[[Page 1556]]

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 ``$2,097'' are removed and the figures 
``$2,140'' 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 ``$279'' are removed and the figures 
``$285'' are added in their place.

    Issued in Washington, DC.
W. Thomas Reeder,
Director, Pension Benefit Guaranty Corporation.
[FR Doc. 2018-00406 Filed 1-11-18; 8:45 am]
BILLING CODE 7709-02-P

Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Rules and Regulations 1555

Issued in Washington, DC. amended by the Federal Civil Penalties $275.3 In a final rule published on
Daniel S. Liebman, Inflation Adjustment Act Improvements January 31, 2017 (at 82 FR 8813), PBGC
Acting Assistant General Counsel for Act of 2015 and from sections finalized its interim final rule and
Regulatory Affairs, Pension Benefit Guaranty 4002(b)(3), 4071, and 4302 of the adjusted the maximum penalty under
Corporation. Employee Retirement Income Security section 4071 to $2,097 and the
[FR Doc. 2018–00348 Filed 1–11–18; 8:45 am] Act of 1974 (ERISA). maximum penalty under section 4302 to
BILLING CODE 7709–02–P
Major Provisions of the Regulatory $279.4
Action On December 15, 2017, the Office of
PENSION BENEFIT GUARANTY This rule adjusts as required by law Management and Budget issued
CORPORATION the maximum civil penalties that PBGC memorandum M–18–03 on
may assess under sections 4071 and implementation of the 2018 annual
29 CFR Parts 4071 and 4302 4302 of ERISA. The new maximum inflation adjustment pursuant to the
amounts are $2,140 for section 4071 2015 act.5 The memorandum provides
RIN 1212–AB45
penalties and $285 for section 4302 agencies with the cost-of-living
Adjustment of Civil Penalties for penalties. adjustment multiplier for 2018, which is
Inflation Background based on the Consumer Price Index
(CPI–U) for the month of October 2017,
AGENCY: Pension Benefit Guaranty The Pension Benefit Guaranty
not seasonally adjusted. The multiplier
Corporation. Corporation (PBGC) administers title IV
for 2018 is 1.02041. The adjusted
ACTION: Final rule. of the Employee Retirement Income
Security Act of 1974 (ERISA). Title IV maximum amounts are $2,140 for
SUMMARY: The Pension Benefit Guaranty has two provisions that authorize PBGC section 4071 penalties and $285 for
Corporation is required to amend its to assess civil monetary penalties.1 section 4302 penalties.
regulations annually to adjust for Section 4302, added to ERISA by the Compliance With Regulatory
inflation the maximum civil penalty for Multiemployer Pension Plan Requirements
failure to provide certain notices or Amendments Act of 1980, authorizes
other material information and for PBGC to assess a civil penalty of up to The Office of Management and Budget
failure to provide certain multiemployer $100 a day for failure to provide a notice has determined that this rule is not a
plan notices. under subtitle E of title IV of ERISA ‘‘significant regulatory action’’ under
DATES: Effective date: This rule is (dealing with multiemployer plans). Executive Order 12866 and therefore not
effective on January 12, 2018. Section 4071, added to ERISA by the subject to their review. As this is not a
Applicability date: The increases in Omnibus Budget Reconciliation Act of significant regulatory action under E.O.
the civil monetary penalties under 1987, authorizes PBGC to assess a civil 12866, it is not considered an E.O.
sections 4071 and 4302 provided for in penalty of up to $1,000 a day for failure 13771 regulatory action.
this rule apply to such penalties to provide a notice or other material
information under subtitles A, B, and C The Office of Management and Budget
assessed after January 12, 2018.
of title IV and sections 303(k)(4) and also has determined that notice and
FOR FURTHER INFORMATION CONTACT:
306(g)(4) of title I of ERISA. public comment on this final rule are
Stephanie Cibinic, Deputy Assistant
unnecessary because the adjustment of
General Counsel for Regulatory Affairs Adjustment of Civil Penalties civil penalties implemented in the rule
(cibinic.stephanie@pbgc.gov), Office of
On November 2, 2015, the President is required by law. See 5 U.S.C. 553(b).
the General Counsel, Pension Benefit
signed into law the Federal Civil Because no general notice of proposed
Guaranty Corporation, 1200 K Street
Penalties Inflation Adjustment Act
NW, Washington, DC 20005–4026; 202– rulemaking is required for this rule, the
Improvements Act of 2015,2 which
326–4400 extension 6352. (TTY and Regulatory Flexibility Act of 1980 does
requires agencies to adjust civil
TDD users may call the Federal relay not apply. See 5 U.S.C. 601(2).
monetary penalties for inflation and to
service toll-free at 800–877–8339 and
publish the adjustments in the Federal List of Subjects
ask to be connected to 202–326–4400
Register. An initial adjustment was
extension 6352.) 29 CFR Part 4071
required to be made by interim final
SUPPLEMENTARY INFORMATION: rule published by July 1, 2016, and Penalties.
Executive Summary effective by August 1, 2016. Subsequent
adjustments must be promulgated in 29 CFR Part 4302
Purpose of the Regulatory Action January each year after 2016. In an
This rule is needed to carry out the interim final rule published on May 13, Penalties.
requirements of the Federal Civil 2016 (at 81 FR 29765), PBGC adjusted In consideration of the foregoing,
Penalties Inflation Adjustment Act the maximum penalty under section PBGC amends 29 CFR parts 4071 and
Improvements Act of 2015 and Office of 4071 to $2,063 and adjusted the 4302 as follows:
Management and Budget guidance M– maximum penalty under section 4302 to
18–03. The rule adjusts, as required for
3 The Office of Management and Budget issued
2018, the maximum civil penalties 1 Under the Federal Civil Penalties Inflation

under 29 CFR part 4071 and 29 CFR part Adjustment Act of 1990, a penalty is a civil memorandum M–16–06 on implementation of the
sradovich on DSK3GMQ082PROD with RULES

monetary penalty if (among other things) it is for 2015 act, including multipliers to use in the initial
4302 that PBGC may assess for failure to a specific monetary amount or has a maximum adjustment.
provide certain notices or other material amount specified by Federal law. Title IV also 4 The Office of Management and Budget issued
information and certain multiemployer provides (in section 4007) for penalties for late
memorandum M–17–11 on December 16, 2016, on
plan notices. payment of premiums, but those penalties are
neither in a specified amount nor subject to a implementation of the 2015 act, including the cost-
PBGC’s legal authority for this action specified maximum amount. of-living adjustment multiplier for 2017.
comes from the Federal Civil Penalties 2 Sec. 701, Public Law 114–74, 129 Stat. 599–601 5 https://www.whitehouse.gov/wp-content/

Inflation Adjustment Act of 1990 as (Bipartisan Budget Act of 2015). uploads/2017/11/M-18-03.pdf

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1556 Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Rules and Regulations

PART 4071—PENALTIES FOR DATES: This rule is effective on January and the Centers for Independent Living
FAILURE TO PROVIDE CERTAIN 12, 2018. program. In 2014, the Workforce
NOTICES OR OTHER MATERIAL FOR FURTHER INFORMATION CONTACT: Innovation and Opportunity Act
INFORMATION Karen Kay at 703–693–0909. transferred these programs to the
SUPPLEMENTARY INFORMATION: It has been
Department of Health and Human
■ 1. The authority citation for part 4071 Services, which has adopted regulations
determined that publication of this CFR
continues to read as follows: for them.
part removal for public comment is
Authority: 28 U.S.C. 2461 note, as impracticable, unnecessary, and DATES: These regulations are effective
amended by sec. 701, Pub. L. 114–74, 129 contrary to public interest since it is January 12, 2018.
Stat. 599–601; 29 U.S.C. 1302(b)(3), 1371. based on removing DoD internal FOR FURTHER INFORMATION CONTACT: Kate
§ 4071.3 [Amended] policies and procedures that are Friday, U.S. Department of Education,
publically available on the Department’s 400 Maryland Ave. SW, Room 5104
■ 2. In § 4071.3, the figures ‘‘$2,097’’ are issuance website. Once signed, a copy of PCP, Washington, DC 20202–2500.
removed and the figures ‘‘$2,140’’ are DoD’s internal guidance contained in Telephone: (202) 245–7605 or email:
added in their place. DoD Directive 2040.03 will be made Kate.Friday@ed.gov.
available at http://www.esd.whs.mil/ If you use a telecommunications
PART 4302—PENALTIES FOR device for the deaf (TDD) or a text
FAILURE TO PROVIDE CERTAIN Directives/issuances/dodd/.
This rule is being removed from the telephone (TTY), call the Federal Relay
MULTIEMPLOYER PLAN NOTICES Service (FRS), toll free at 1–800–877–
CFR because it does not place a burden
on the public as it deals with matters 8339.
■ 3. The authority citation for part 4302
continues to read as follows: internal to DoD. As a direct result of SUPPLEMENTARY INFORMATION: On
there being no burden on the public, February 24, 2017, President Trump
Authority: 28 U.S.C. 2461 note, as
amended by sec. 701, Pub. L. 114–74, 129
there was never was a cost to the public signed Executive Order 13777,
Stat. 599–601; 29 U.S.C. 1302(b)(3), 1452. to execute this rule, therefore, removing ‘‘Enforcing the Regulatory Reform
it does not provide a cost savings to the Agenda,’’ which established a Federal
§ 4302.3 [Amended] public. policy ‘‘to alleviate unnecessary
■ 4. In § 4302.3, the figures ‘‘$279’’ are regulatory burdens’’ on the American
List of Subjects in 32 CFR Part 205
removed and the figures ‘‘$285’’ are people. Section 3(a) of the Executive
added in their place. Government procurement. Order directed each Federal agency to
establish a regulatory reform task force,
Issued in Washington, DC. PART 205—[REMOVED] the duty of which is to evaluate existing
W. Thomas Reeder, regulations and ‘‘make
Director, Pension Benefit Guaranty ■ Accordingly, under the authority of 5
recommendations to the agency head
Corporation. U.S.C. 301, 32 CFR part 205 is removed.
regarding their repeal, replacement, or
[FR Doc. 2018–00406 Filed 1–11–18; 8:45 am] Dated: January 9, 2018. modification.’’ Accordingly, the
BILLING CODE 7709–02–P Aaron Siegel, Secretary removes 34 CFR parts 350,
Alternate OSD Federal Register Liaison 356, 359, 364, 365, and 366 because
Officer, Department of Defense. they have been superseded.
DEPARTMENT OF DEFENSE [FR Doc. 2018–00473 Filed 1–11–18; 8:45 am] In 2014, the Workforce Innovation
BILLING CODE 5001–06–P and Opportunity Act (WIOA) (Pub. L.
Office of the Secretary 113–128) made significant changes to
many programs administered by the
32 CFR Part 205 DEPARTMENT OF EDUCATION Office of Special Education and
Rehabilitative Services (OSERS). WIOA
[Docket ID: DOD–2017–OS–0004] 34 CFR Parts 350, 356, 359, 364, 365, transferred the National Institute for
and 366 Disability and Rehabilitation Research
RIN 0790–AJ05
(NIDRR), its functions, and its programs
RIN 1820–AB75; 1820–AB76
End Use Certificates (EUCs) from OSERS to the Administration for
National Institute on Disability and Community Living (ACL) within the
AGENCY: Office of the Under Secretary of Rehabilitation Research (NIDRR) and Department of Health and Human
Defense for Acquisition, Technology, Independent Living Programs, Services (HHS). In the process, WIOA
and Logistics, DoD. Outdated, Superseded Regulations renamed NIDRR the National Institute
ACTION: Final rule. for Disability, Independent Living, and
AGENCY: Office of Special Education and Rehabilitation Research (NIDILRR).
SUMMARY: This final rule removes DoD’s Rehabilitative Services, Department of (See, WIOA sections 433, 435, 491(n).)
regulation concerning the signing of Education. The programs transferred were the
EUCs required by foreign governments ACTION: Final regulations. Disability and Rehabilitation Research
for foreign defense items purchased by Projects and Centers program, the
the United States. DoD has determined SUMMARY: The Secretary removes Research Fellowships program, and the
that this part does not place a burden on outdated, superseded regulations for Special Projects and Demonstrations for
the public as it deals with matters five programs no longer administered by Spinal Cord Injuries program.
sradovich on DSK3GMQ082PROD with RULES

internal to DoD. DoD signs end use the Department: The Disability and WIOA also created within ACL the
certificates (following internal Rehabilitation Research Projects and Independent Living Administration and
coordination and approval) at the behest Centers Program, the Research transferred to it two programs from the
of a foreign country, when DoD is Fellowships program, the Special Rehabilitation Services Administration
buying products from that country. Projects and Demonstrations for Spinal (RSA) within OSERS, namely the State
Therefore, this part is unnecessary and Cord Injuries program, the State Independent Living Services program
can be removed from the CFR. Independent Living Services program, and the Centers for Independent Living

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Document Created: 2018-10-26 09:53:10
Document Modified: 2018-10-26 09:53:10

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 12, 2018.
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		83 FR 1555
RIN Number		1212-AB45
CFR Citation		29 CFR 4071 29 CFR 4302