PBGC Proposes Fines for Missing Pension Disclosure Deadlines
Published Date: 7/21/2026
Proposed Rule
Summary
The Pension Benefit Guaranty Corporation (PBGC) is proposing new rules to set clear penalties for pension plans that don’t send important notices or info on time. This affects pension plan managers who could face fines but might also get penalties waived in certain cases. Comments on these changes are open until September 21, 2026, so now’s the time to speak up!
Analyzed Economic Effects
10 provisions identified: 3 benefits, 6 costs, 1 mixed.
Tiered Penalties for Reportable Events
PBGC would split reportable‑event filings into three categories with different penalties: Category 1 events get the general $25/day (then $50/day after 90 days) with small‑plan reductions; Category 2 events get $100 per day (with small‑plan reductions but not below $25/day); and Category 3 (most time‑sensitive, e.g., advance notice reportable events and failures to make contributions over $1 million) get $1,000 per day and are not subject to small‑plan reduction.
High Daily Penalty for 4062(e)/4063 Notices
Notices required by sections 4062(e) (substantial cessation of operations) and 4063 (substantial employer withdrawal) would generally carry a $1,000 per day penalty, and these penalties are not subject to the proportional reduction for small plans.
New Default Daily Penalties
PBGC would set a general penalty of $25 per day for the first 90 days of a late required filing and $50 per day beginning on the 91st day. PBGC will review and annually adjust these per‑diem amounts for inflation.
Standard Termination Penalties and Caps
For standard termination filings: Form 500 (standard termination notice) would be $50 per day for the first 90 days and $100 per day thereafter; post‑distribution certification (Form 501) would be $25 per day for the first 90 days and $50 per day thereafter. PBGC proposes caps: penalties for an untimely post‑distribution certification or notice of plan benefits are capped at $100 times the number of distributees or participants, and for plans with under 100 distributees the penalty for an untimely standard termination notice is capped at 5% of the value of benefits distributed at termination (example: $200,000 distributed → $10,000 cap).
Annual 4010 Filing Penalties
For annual financial and actuarial reporting under part 4010, PBGC would generally apply a $100 per day penalty for noncompliance, except for Sec. 4010.6(a)(2) where the $25/day (first 90 days) and $50/day thereafter general penalty schedule would apply. Penalties for part 4010 are not subject to proportional reduction for plans with fewer than 100 participants because filings apply on a controlled‑group basis.
Multiemployer Notice Penalty Policy Change
PBGC historically informed filers of late multiemployer notices and typically did not assess penalties, but under the proposed rules PBGC may assess penalties under part 4302; PBGC may assess the maximum statutory amount (for 2025 that amount is $365 per day) after informing the filer of the lateness, and small‑plan reductions generally would not apply.
Smaller Plans Get Reduced Penalties
For plans with fewer than 100 participants, PBGC would proportionately reduce the $25 and $50 per‑day penalties by multiplying the general penalty by (number of participants ÷ 100), but not below a $10 per‑day floor. PBGC gives an example where a 12‑day delinquency for a plan with 30 participants would be assessed at 30% of the general penalty amounts, subject to a minimum total of $120.
Premium Filings: Notices Before Penalty
For premium payment filings under part 4007, PBGC would generally send multiple past‑due filing notices before assessing a penalty and typically would not assess a penalty if the filer submits the past‑due premium filing in a timely manner after receiving those notices.
Waivers, Reconsideration, and Grounds for Relief
PBGC would have discretion to waive penalties in whole or part for reasonable cause, error of law, PBGC delay, or other appropriate circumstances and would consider mitigating factors (self‑correction, preventive measures) and aggravating factors (potential for harm, repeated offenses, willfulness). Filers may request reconsideration in writing within 30 days of an initial determination.
Incentives for Early Self-Reporting and Annual Inflation Adjustments
PBGC would encourage voluntary self‑reporting and self‑correction by providing lower penalties for violations reported and corrected early, and PBGC will review and adjust per‑diem penalty amounts annually for inflation under the Federal Civil Penalties Inflation Adjustment Act.
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