Adjustment of Civil Penalties for Inflation, 2340-2341 [2022-00778]

Download as PDF 2340 Federal Register / Vol. 87, No. 10 / Friday, January 14, 2022 / Rules and Regulations 2021 Agency Law Name description CFR citation Min penalty (rounded to nearest dollar) Max penalty (rounded to nearest dollar) Min penalty (rounded to nearest dollar) Max penalty (rounded to nearest dollar) OWCP ... Longshore and Harbor Workers’ Compensation Act. Longshore and Harbor Workers’ Compensation Act. Longshore and Harbor Workers’ Compensation Act. Black Lung Benefits Act. Black Lung Benefits Act. Black Lung Benefits Act. Black Lung Benefits Act. Black Lung Benefits Act. Black Lung Benefits Act. Black Lung Benefits Act. Black Lung Benefits Act. Failure to file first report of injury or filing a false statement or misrepresentation in first report. 20 CFR 702.204 ..... ........................ $24,730 ......... ........................ $26,269. Failure to report termination of payments 20 CFR 702.236 ..... ........................ $301 .............. ........................ $320. Discrimination against employees who claim compensation or testify in a LHWCA proceeding. 20 CFR 702.271(a)(2). 2,473 $12,363 ......... 2,627 Failure to report termination of payments 20 CFR 725.621(d) ........................ $1,506 ........... ........................ Failure to secure payment of benefits for mines with fewer than 25 employees. Failure to secure payment of benefits for mines with 25–50 employees. Failure to secure payment of benefits for mines with 51–100 employees. Failure to secure payment of benefits for mines with more than 100 employees. Failure to secure payment of benefits after 10th day of notice. Failure to secure payment of benefits for repeat offenders. Failure to secure payment of benefits ...... 20 CFR 726.302(c)(2)(i). 20 CFR 726.302(c)(2)(i). 20 CFR 726.302(c)(2)(i). 20 CFR 726.302(c)(2)(i). 20 CFR 726.302(c)(4). 20 CFR 726.302(c)(5). 20 CFR 726.302(c)(5). 148 ....................... 157 293 ....................... 311 441 ....................... 468 586 ....................... 622 148 ....................... 157 441 ....................... 468 ........................ $3,011 ........... ........................ OWCP ... OWCP ... OWCP ... OWCP ... OWCP ... OWCP ... OWCP ... OWCP ... OWCP ... OWCP ... PENSION BENEFIT GUARANTY CORPORATION 1200 K Street NW, Washington, DC 20005–4026; 202–229–3829. (TTY users may call the Federal relay service tollfree at 800–877–8339 and ask to be connected to 202–229–3829.) SUPPLEMENTARY INFORMATION: 29 CFR Parts 4071 and 4302 Executive Summary [FR Doc. 2022–00144 Filed 1–13–22; 8:45 am] BILLING CODE 4510–HL–P RIN 1212–AB45 Adjustment of Civil Penalties for Inflation Pension Benefit Guaranty Corporation. ACTION: Final rule. AGENCY: The Pension Benefit Guaranty Corporation is required to amend its regulations annually to adjust for inflation the maximum civil penalty for failure to provide certain notices or other material information and for failure to provide certain multiemployer plan notices. DATES: Effective date: This rule is effective on January 14, 2022. Applicability date: The increases in the civil monetary penalties under sections 4071 and 4302 of the Employee Retirement Income Security Act provided for in this rule apply to such penalties assessed after January 14, 2022. FOR FURTHER INFORMATION CONTACT: Gregory Katz (katz.gregory@pbgc.gov), Attorney, Regulatory Affairs Division, Pension Benefit Guaranty Corporation, SUMMARY: lotter on DSK11XQN23PROD with RULES1 2022 VerDate Sep<11>2014 16:05 Jan 13, 2022 Jkt 256001 Purpose of the Regulatory Action This rule is needed to carry out the requirements of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 and Office of Management and Budget guidance M– 22–07. The rule adjusts, as required for 2022, the maximum civil penalties under 29 CFR 4071 and 29 CFR 4302 that the Pension Benefit Guaranty Corporation (PBGC) may assess for failure to provide certain notices or other material information and certain multiemployer plan notices. PBGC’s legal authority for this action comes from the Federal Civil Penalties Inflation Adjustment Act of 1990 as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 and from sections 4002(b)(3), 4071, and 4302 of the Employee Retirement Income Security Act of 1974 (ERISA). Major Provisions of the Regulatory Action This rule adjusts as required by law the maximum civil penalties that PBGC may assess under sections 4071 and 4302 of ERISA. The new maximum amounts are $2,400 for section 4071 PO 00000 Frm 00032 Fmt 4700 Sfmt 4700 $13,132. $1,600. $3,198. penalties and $320 for section 4302 penalties. Background PBGC administers title IV of ERISA. Title IV has two provisions that authorize PBGC to assess civil monetary penalties.1 Section 4302, added to ERISA by the Multiemployer Pension Plan Amendments Act of 1980, authorizes PBGC to assess a civil penalty of up to $100 a day for failure to provide a notice under subtitle E of title IV of ERISA (dealing with multiemployer plans). Section 4071, added to ERISA by the Omnibus Budget Reconciliation Act of 1987, authorizes PBGC to assess a civil penalty of up to $1,000 a day for failure to provide a notice or other material information under subtitles A, B, and C of title IV and sections 303(k)(4) and 306(g)(4) of title I of ERISA. Adjustment of Civil Penalties On November 2, 2015, the President signed into law the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015,2 which 1 Under the Federal Civil Penalties Inflation Adjustment Act of 1990, a penalty is a civil monetary penalty if (among other things) it is for a specific monetary amount or has a maximum amount specified by Federal law. Title IV also provides (in section 4007) for penalties for late payment of premiums, but those penalties are neither in a specified amount nor subject to a specified maximum amount. 2 Sec. 701, Public Law 114–74, 129 Stat. 599–601 (Bipartisan Budget Act of 2015). E:\FR\FM\14JAR1.SGM 14JAR1 Federal Register / Vol. 87, No. 10 / Friday, January 14, 2022 / Rules and Regulations requires agencies to adjust civil monetary penalties for inflation and to publish the adjustments in the Federal Register. An initial adjustment was required to be made by interim final rule published by July 1, 2016, and effective by August 1, 2016. Subsequent adjustments must be published by January 15 each year after 2016. On December 15, 2021, the Office of Management and Budget issued memorandum M–22–07 on implementation of the 2022 annual inflation adjustment pursuant to the 2015 act.3 The memorandum provides agencies with the cost-of-living adjustment multiplier for 2022, which is based on the Consumer Price Index (CPI–U) for the month of October 2021, not seasonally adjusted. The multiplier for 2022 is 1.06222. The adjusted maximum amounts are $2,400 for section 4071 penalties and $320 for section 4302 penalties. Compliance With Regulatory Requirements The Office of Management and Budget has determined that this rule is not a ‘‘significant regulatory action’’ under Executive Order 12866 and therefore not subject to its review. The Office of Management and Budget also has determined that notice and public comment on this final rule are unnecessary because the adjustment of civil penalties implemented in the rule is required by law. See 5 U.S.C. 553(b). Because no general notice of proposed rulemaking is required for this rule, the Regulatory Flexibility Act of 1980 does not apply. See 5 U.S.C. 601(2). List of Subjects 3. The authority citation for part 4302 continues to read as follows: ■ Authority: 28 U.S.C. 2461 note, as amended by sec. 701, Pub. L. 114–74, 129 Stat. 599–601; 29 U.S.C. 1302(b)(3), 1452. [Amended] 4. In § 4302.3, remove the number ‘‘$301’’ and add its place the number ‘‘$320’’. ■ Issued in Washington, DC, by Gordon Hartogensis, Director, Pension Benefit Guaranty Corporation. [FR Doc. 2022–00778 Filed 1–13–22; 8:45 am] BILLING CODE 7709–02–P DEPARTMENT OF THE INTERIOR Table of Contents Office of Surface Mining Reclamation and Enforcement I. Background A. How did the reclamation fee work before the 2021 amendments? B. How did the 2021 amendments change the reclamation fee and the annual AML grant distributions? II. Administrative Procedure Act A. Why is the rule being published on an interim final basis? B. How does the rule operate? III. Procedural Matters A. Congressional Review Act B. Regulatory Planning and Review (Executive Orders 12866 and 13563) C. Regulatory Flexibility Act D. Small Business Regulatory Enforcement Fairness Act E. Unfunded Mandates Reform Act F. Takings (Executive Order 12630) G. Federalism (Executive Order 13132) H. Civil Justice Reform (Executive Order 12988) I. Consultation With Indian Tribes (Executive Order 13175 and Departmental Policy) J. Paperwork Reduction Act K. National Environmental Policy Act L. Effects on Energy Supply, Distribution, and Use (Executive Order 13211) M. Clarity of This Regulation N. Data Quality Act O. National Technology Transfer and Advancement Act P. Protection of Children From Environmental Health Risks and Safety Risks (Executive Order 13045) 30 CFR Parts 870 and 872 [Docket ID: OSM 2021–0008; S1D1S SS08011000 SX064A000 221S180110; S2D2S SS08011000 SX064A000 22XS501520] RIN 1029–AC83 Abandoned Mine Land Reclamation Fee 1. The authority citation for part 4071 continues to read as follows: ■ Authority: 28 U.S.C. 2461 note, as amended by sec. 701, Pub. L. 114–74, 129 Stat. 599–601; 29 U.S.C. 1302(b)(3), 1371. 3 See M–22–07, Implementation of Penalty Inflation Adjustments for 2022, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, https:// www.whitehouse.gov/wp-content/uploads/2021/12/ M-22-07.pdf. Jkt 256001 We, the Office of Surface Mining Reclamation and Enforcement (OSMRE), are revising our regulations for the Abandoned Mine Reclamation Fund (AML Fund). This rule revises our regulations to be consistent with the Infrastructure Investment and Jobs Act (IIJA), which was signed into law on November 15, 2021, and which included the Abandoned Mine Land Reclamation Amendments of 2021 (the 2021 amendments). The rule reflects the extension of our statutory authority to collect reclamation fees for an additional thirteen years and to reduce the fee rates. In addition, we are revising our rule provisions to reflect the statutory extension of the dates when moneys derived from these fees will be available to eligible States and Tribes for grant distributions. SUMMARY: PART 4071—PENALTIES FOR FAILURE TO PROVIDE CERTAIN NOTICES OR OTHER MATERIAL INFORMATION lotter on DSK11XQN23PROD with RULES1 PART 4302—PENALTIES FOR FAILURE TO PROVIDE CERTAIN MULTIEMPLOYER PLAN NOTICES § 4302.3 Effective January 14, 2022. Comments will be accepted until February 14, 2022. ADDRESSES: You may submit comments by one of the following methods: Federal e-Rulemaking Portal: http:// www.regulations.gov. Follow the instructions for submitting comments to Docket No. OSM–2021–0008. Please note that if you are using the Federal eRulemaking Portal, the deadline for submitting electronic comments is 11:59 p.m. Eastern Standard Time on the comment due date. Mail: Address comment to Public Comments Processing, Attn: Docket No. OSM–2021–0008; Office of Surface Mining Reclamation and Enforcement, 1849 C Street NW, Mail Stop 4558, Washington, DC 20240. FOR FURTHER INFORMATION CONTACT: Harry Payne, Office of Surface Mining Reclamation and Enforcement, 1849 C Street NW, Mail Stop 4558, Washington, DC 20240; Telephone (202) 208–5683. Email: hpayne@osmre.gov. SUPPLEMENTARY INFORMATION: DATES: Office of Surface Mining Reclamation and Enforcement, Interior. ACTION: Interim final rule, request for comments. 29 CFR Part 4302 Penalties. In consideration of the foregoing, PBGC amends 29 CFR parts 4071 and 4302 as follows: 16:05 Jan 13, 2022 [Amended] 2. In § 4071.3, remove the number ‘‘$2,259’’ and add in its place the number ‘‘$2,400’’. ■ AGENCY: 29 CFR Part 4071 Penalties. VerDate Sep<11>2014 § 4071.3 2341 PO 00000 Frm 00033 Fmt 4700 Sfmt 4700 I. Background A. How did the reclamation fee work before the 2021 amendments? Title IV of the Surface Mining Control and Reclamation Act of 1977 (SMCRA) E:\FR\FM\14JAR1.SGM 14JAR1

Agencies

[Federal Register Volume 87, Number 10 (Friday, January 14, 2022)]
[Rules and Regulations]
[Pages 2340-2341]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-00778]


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PENSION BENEFIT GUARANTY CORPORATION

29 CFR Parts 4071 and 4302

RIN 1212-AB45


Adjustment of Civil Penalties for Inflation

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Pension Benefit Guaranty Corporation is required to amend 
its regulations annually to adjust for inflation the maximum civil 
penalty for failure to provide certain notices or other material 
information and for failure to provide certain multiemployer plan 
notices.

DATES: 
    Effective date: This rule is effective on January 14, 2022.
    Applicability date: The increases in the civil monetary penalties 
under sections 4071 and 4302 of the Employee Retirement Income Security 
Act provided for in this rule apply to such penalties assessed after 
January 14, 2022.

FOR FURTHER INFORMATION CONTACT: Gregory Katz ([email protected]), 
Attorney, Regulatory Affairs Division, Pension Benefit Guaranty 
Corporation, 1200 K Street NW, Washington, DC 20005-4026; 202-229-3829. 
(TTY users may call the Federal relay service toll-free at 800-877-8339 
and ask to be connected to 202-229-3829.)

SUPPLEMENTARY INFORMATION:

Executive Summary

Purpose of the Regulatory Action

    This rule is needed to carry out the requirements of the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 and 
Office of Management and Budget guidance M-22-07. The rule adjusts, as 
required for 2022, the maximum civil penalties under 29 CFR 4071 and 29 
CFR 4302 that the Pension Benefit Guaranty Corporation (PBGC) may 
assess for failure to provide certain notices or other material 
information and certain multiemployer plan notices.
    PBGC's legal authority for this action comes from the Federal Civil 
Penalties Inflation Adjustment Act of 1990 as amended by the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 and 
from sections 4002(b)(3), 4071, and 4302 of the Employee Retirement 
Income Security Act of 1974 (ERISA).

Major Provisions of the Regulatory Action

    This rule adjusts as required by law the maximum civil penalties 
that PBGC may assess under sections 4071 and 4302 of ERISA. The new 
maximum amounts are $2,400 for section 4071 penalties and $320 for 
section 4302 penalties.

Background

    PBGC administers title IV of ERISA. Title IV has two provisions 
that authorize PBGC to assess civil monetary penalties.\1\ Section 
4302, added to ERISA by the Multiemployer Pension Plan Amendments Act 
of 1980, authorizes PBGC to assess a civil penalty of up to $100 a day 
for failure to provide a notice under subtitle E of title IV of ERISA 
(dealing with multiemployer plans). Section 4071, added to ERISA by the 
Omnibus Budget Reconciliation Act of 1987, authorizes PBGC to assess a 
civil penalty of up to $1,000 a day for failure to provide a notice or 
other material information under subtitles A, B, and C of title IV and 
sections 303(k)(4) and 306(g)(4) of title I of ERISA.
---------------------------------------------------------------------------

    \1\ Under the Federal Civil Penalties Inflation Adjustment Act 
of 1990, a penalty is a civil monetary penalty if (among other 
things) it is for a specific monetary amount or has a maximum amount 
specified by Federal law. Title IV also provides (in section 4007) 
for penalties for late payment of premiums, but those penalties are 
neither in a specified amount nor subject to a specified maximum 
amount.
---------------------------------------------------------------------------

Adjustment of Civil Penalties

    On November 2, 2015, the President signed into law the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015,\2\ 
which

[[Page 2341]]

requires agencies to adjust civil monetary penalties for inflation and 
to publish the adjustments in the Federal Register. An initial 
adjustment was required to be made by interim final rule published by 
July 1, 2016, and effective by August 1, 2016. Subsequent adjustments 
must be published by January 15 each year after 2016.
---------------------------------------------------------------------------

    \2\ Sec. 701, Public Law 114-74, 129 Stat. 599-601 (Bipartisan 
Budget Act of 2015).
---------------------------------------------------------------------------

    On December 15, 2021, the Office of Management and Budget issued 
memorandum M-22-07 on implementation of the 2022 annual inflation 
adjustment pursuant to the 2015 act.\3\ The memorandum provides 
agencies with the cost-of-living adjustment multiplier for 2022, which 
is based on the Consumer Price Index (CPI-U) for the month of October 
2021, not seasonally adjusted. The multiplier for 2022 is 1.06222. The 
adjusted maximum amounts are $2,400 for section 4071 penalties and $320 
for section 4302 penalties.
---------------------------------------------------------------------------

    \3\ See M-22-07, Implementation of Penalty Inflation Adjustments 
for 2022, Pursuant to the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015, https://www.whitehouse.gov/wp-content/uploads/2021/12/M-22-07.pdf.
---------------------------------------------------------------------------

Compliance With Regulatory Requirements

    The Office of Management and Budget has determined that this rule 
is not a ``significant regulatory action'' under Executive Order 12866 
and therefore not subject to its review.
    The Office of Management and Budget also has determined that notice 
and public comment on this final rule are unnecessary because the 
adjustment of civil penalties implemented in the rule is required by 
law. See 5 U.S.C. 553(b).
    Because no general notice of proposed rulemaking is required for 
this rule, the Regulatory Flexibility Act of 1980 does not apply. See 5 
U.S.C. 601(2).

List of Subjects

29 CFR Part 4071

    Penalties.

29 CFR Part 4302

    Penalties.

    In consideration of the foregoing, PBGC amends 29 CFR parts 4071 
and 4302 as follows:

PART 4071--PENALTIES FOR FAILURE TO PROVIDE CERTAIN NOTICES OR 
OTHER MATERIAL INFORMATION

0
1. The authority citation for part 4071 continues to read as follows:

    Authority: 28 U.S.C. 2461 note, as amended by sec. 701, Pub. L. 
114-74, 129 Stat. 599-601; 29 U.S.C. 1302(b)(3), 1371.


Sec.  4071.3  [Amended]

0
2. In Sec.  4071.3, remove the number ``$2,259'' and add in its place 
the number ``$2,400''.

PART 4302--PENALTIES FOR FAILURE TO PROVIDE CERTAIN MULTIEMPLOYER 
PLAN NOTICES

0
3. The authority citation for part 4302 continues to read as follows:

    Authority: 28 U.S.C. 2461 note, as amended by sec. 701, Pub. L. 
114-74, 129 Stat. 599-601; 29 U.S.C. 1302(b)(3), 1452.


Sec.  4302.3  [Amended]

0
4. In Sec.  4302.3, remove the number ``$301'' and add its place the 
number ``$320''.

    Issued in Washington, DC, by
Gordon Hartogensis,
Director, Pension Benefit Guaranty Corporation.
[FR Doc. 2022-00778 Filed 1-13-22; 8:45 am]
BILLING CODE 7709-02-P