The Department of Labor (DOL) and Pension Benefit Guaranty Corp. (PBGC) have published 2023 inflation-adjusted civil monetary penalties for retirement plans.
The chart below shows DOL’s maximum 2023 penalties for single-employer defined benefit (DB) and defined contribution (DC) plans, with 2022 penalties shown for comparison. The increased amounts apply to penalties assessed after Jan. 15, 2023, for violations occurring after Nov. 2, 2015.
PBGC’s 2023 maximum penalty under ERISA Section 4071 for single-employer DB plans is $2,586 a day (up from $2,400 in 2022) for each day a filing, notice or other information is overdue. The higher rate applies to penalties assessed after Jan. 12, 2023. This penalty could apply to virtually any late PBGC information or premium filing for a single-employer plan, including:
Maximum penalty rarely assessed. In practice, PBGC rarely assesses the maximum penalty. The agency's current penalty policy calls for much smaller penalties, especially when a delinquent filing is made soon after the due date or the plan is small. However, depending on the facts and circumstances, PBGC might assess the maximum penalty in two situations:
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