The U.S. Department of Labor has published a final regulation implementing the department's authority to assess civil penalties against plan administrators who fail to give employees notice of the right to sell company stock in their pension plan accounts.
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The Pension Protection Act (PPA) established rights of plan participants and beneficiaries to sell the company stock in their accounts and reinvest the proceeds into other investments available under a plan. The PPA requires plan administrators to notify participants and beneficiaries of this new right and of the importance of diversifying the investment of retirement account assets. The PPA also gives the department authority to assess civil monetary penalties up to $100 per day against plan administrators for each violation of the new notice requirement.
This regulation is published in the Federal Register today. The public may submit comments to the department via e-mail sent to e-ORI@dol.gov or through the federal e-rulemaking portal at www.regulations.gov. Paper-based comments should be sent to the Office of Regulations and Interpretations, Employee Benefits Security Administration, Room N-5669, U.S. Department of Labor, 200 Constitution Ave., N.W., Washington, D.C. 20210, Attention: 502(c)(7) Civil Penalty.
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