The Pension Benefit Guaranty Corporation (PBGC) has issued a final rule to adjust the maximum civil penalties for inflation, as required by federal law. These adjustments, effective January 13, 2021, apply to penalties related to failure to provide certain required notices under the Employee Retirement Income Security Act (ERISA). The maximum penalty under ERISA section 4071 is now $2,259, and the maximum under section 4302 is $301. This change is part of an annual process to ensure penalties keep pace with inflation.
Simple Explanation
The Pension Benefit Guaranty Corporation updated some rules so that if someone doesn't send important papers like they're supposed to, they might have to pay more money, because as time goes on, things cost more, just like how candy can get more expensive each year.