Defendant's Attorney: Oklahoma City, Oklahoma employment law lawyers represented the Defendants.

Description: Oklahoma City, Oklahoma employment law lawyer represented the Plaintiff who sued the Defendants on wrongful failure to pay E.R.I.S.A.-Employee Benefits pursuant to 29 U.S.C. 1132.

ERISA section 502(i)(1) authorizes the Secretary to assess a civil penalty against a party in interest who engages in a prohibited transaction with respect to either an employee welfare benefit plan or a non-qualified pension plan.(2) This penalty applies to welfare and non-qualified plans, and complements the excise tax imposed on tax-qualified pension plans by section 4975(a) of the Internal Revenue Code.

The Department's regulation identifies the procedures(3) for assessing a two-tiered 502(i) civil penalty. It also communicates the circumstances when the party in interest may contest EBSA's findings and assessment.

The first tier of the penalty may not exceed 5% of the "amount involved." The second tier of the penalty, which is not more than 100 % of the amount involved, applies only if the prohibited transaction remains uncorrected within 90 days after a final agency order(4).

Because the assessment of the civil penalty under section 502(i) is discretionary, the RO should consider the assessment of the 502(i) civil penalty as one of several enforcement options.

Outcome: Settled.

02/23/2024 12 FIRST MOTION to Extend Deadlines or Hearings by Darrell Low. (Dickinson, Roy) (Entered: 02/23/2024)
02/23/2024 13 ORDER granting 12 Plaintiff's Unopposed Motion to Extend Administrative Closing Order Deadline. Signed by Judge Patrick R Wyrick on 2/23/2024. (ks) (Entered: 02/23/2024)

Plaintiff's Experts:

Defendant's Experts:

Comments: