PBGC penalty waivers-experiences of others

[AndyH]

Looking for help with dealing with PBGC penalty assessment-experiences of others.

This is the same problem takeover case I have posted about before-actually one of several.

Sponsor did not file PBGC premiums for several years; service provider never informed sponsor of the continued responsibility after plan was frozen and never completed the forms. Service provider admits guilt and responsibility but has no money to go after.

New TPA completes and sponsor files four years of forms and PBGC sends penalty and interest notice. Sponsor files a request for reconsideration. PBGC responds by waiving 40% of penalties for last 3 years (no interest waiver-they claim they cannot do that). No waiver is granted for 2002, the first non-filing year. Assessment was 100% of premium plus interest. This is the year the PBGC sent a letter that was not responded to timely. It is what awoke the sponsor to the issue and fired the service provider.

Question is: Is a 40% penalty waiver following normal TSL and request for reconsideration high, low, or similar to the experiences of others? Should they file another appeal or pay it?

[JanetM]

AndyH, I have had only one experience like this. I am the plan sponsor and I mixed up the amounts for two DB plans. PBGC caught it three years later. Mixed up 20K and 1K. PBGC wanted lots in penalty and interest. When I explained they had the money but I identified the two plans wrong they waived everything and reposted the amount to the proper plans.