Can plan assets be used to pay the civil penalties assessed under ERISA 502(c)(2)?
No. The plan administrator is personally liable for the payment of civil penalties assessed under ERISA 502(c)(2). Therefore, civil penalties, including penalties paid under the DFVC Program, may not be paid from the assets of an employee benefit plan. May an administrator of an apprenticeship and training plan, as described in 29 CFR 2520.104-22, or an administrator of a top hat plan, as described in 29 CFR 2520.104-23, participate in the DFVC Program? Yes. Administrators of apprenticeship and training plans and administrators of pension plans for a select group of management or highly compensated employees (top hat plans), may file the applicable notice and statement described in regulation 2520.104-22 and 2520.104-23, respectively, under the DFVC Program in lieu of filing any past due annual reports. By properly filing these statements and meeting the other applicable DFVC Program requirements, administrators will be considered as having elected compliance with the exemption and/or
Related Questions
- What civil penalties may be assessed by the Department against plan administrators who fail to file a timely annual report and who do not participate in the DFVCP?
- Can plan assets be used to pay the civil penalties assessed under ERISA 502(c)(2)?
- Can HSA assets be used to pay high-deductible health plan premiums?
