[Federal Register: August 10, 2007 (Volume 72, Number 154)]
[Proposed Rules]
[Page 44991]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10au07-18]
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DEPARTMENT OF LABOR
Employee Benefits Security Administration
29 CFR Part 2560
RIN 1210-AB23
Amendments to Civil Penalties Under ERISA Section 502(c)(7)
AGENCY: Employee Benefits Security Administration, Labor.
ACTION: Proposed rule.
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SUMMARY: This proposed rule is a companion to the Department of Labor/
Employee Benefits Security Administration's (Department) direct final
rule (published today in the ``Rules and Regulations'' section of the
Federal Register) amending the Department's civil penalty regulation
under section 502(c)(7) of the Employee Retirement Income Security Act
of 1974 (ERISA or the Act) to reflect recent amendments to section
502(c)(7) by the Pension Protection Act of 2006. These amendments
authorize the Secretary of Labor to assess civil penalties not to
exceed $100 per day for each violation of section 101(m) of ERISA.
Section 101(m) of ERISA requires plan administrators of individual
account plans to notify participants and beneficiaries of their right
to sell the company stock in their accounts and reinvest the proceeds
into other investments available under the plan.
The Department is publishing these amendments as a direct final
rule without prior proposal because the Department views them as highly
technical and anticipates no significant adverse comment. The
Department has explained its reasons in the preamble to the direct
final rule. If the Department receives no significant adverse comment
during the comment period, no further action on this proposed rule will
be taken. However, if the Department receives significant adverse
comment, the Department will withdraw the direct final rule and it will
not take effect. In that case, the Department will address all public
comments in a subsequent final rule based on this proposed rule. The
Department will not institute a second comment period on this rule. Any
parties interested in commenting must do so during this comment period.
DATES: Comments must be received on or before September 10, 2007.
ADDRESSES: To facilitate the receipt and processing of comments, the
Department encourages interested persons to submit their comments
electronically by e-mail to e-ORI@dol.gov, or by using the Federal
eRulemaking portal at http://www.regulations.gov (follow instructions for
submission of comments). Persons submitting comments electronically are
encouraged not to submit paper copies. Persons interested in submitting
comments on paper should send or deliver their comments (at least three
copies) to the Office of Regulations and Interpretations, Employee
Benefits Security Administration, Room N-5669, U.S. Department of
Labor, 200 Constitution Avenue, NW., Washington, DC 20210, Attn:
502(c)(7) Civil Penalty. Comments received will be posted without
change, including any personal information provided, to
www.regulations.gov and http://www.dol.gov/ebsa, and also available for
public inspection at the Public Disclosure Room, Employee Benefits
Security Administration, Room N-1513, U.S. Department of Labor, 200
Constitution Avenue, NW., Washington, DC.
FOR FURTHER INFORMATION CONTACT: Stephanie L. Ward, Office of
Regulations and Interpretations, Employee Benefits Security
Administration, (202) 693-8500. This is not a toll-free number.
SUPPLEMENTARY INFORMATION: As noted above, in the ``Rules and
Regulations'' section of today's Federal Register, the direct final
rule being published makes technical changes to the Department's
existing civil penalty regulation at 29 CFR 2560.502c-7 for violations
of section 101(i) of ERISA, relating to blackout notices, in order to
conform the regulation to section 502(c)(7) of ERISA, as amended by the
Pension Protection Act of 2006, Public Law 109-280, 120 Stat. 780, for
violations of section 101(m) of ERISA, relating to diversification
rights. The provisions proposed here are those contained in the direct
final rule. Please refer to the preamble and regulatory text of the
direct final rule for further information and the actual text of the
revisions. Additionally, all information regarding Statutory and
Executive Orders for this proposed rule can be found in the
Supplementary Information section of the direct final rule.
Signed at Washington, DC, this 3rd day of August, 2007.
Bradford P. Campbell,
Acting Assistant Secretary, Employee Benefits Security Administration,
Department of Labor.
[FR Doc. E7-15568 Filed 8-9-07; 8:45 am]
BILLING CODE 4510-29-P