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Part 22 · Chapter 3

PBGC Audits and Compliance Reviews

Law stated as of October 3, 2026 · Government Audits and Investigations

Scope and status

This chapter covers PBGC's audit and compliance-monitoring functions: premium audits, standard-termination audits, the reportable-events and Early Warning monitoring functions, §4010 and §4062(e) compliance triggers, Missing Participants Program compliance, and PBGC's general investigatory and appeals authority. Scope discipline: this chapter covers audit/compliance process — the underlying substantive funding, premium, termination, and reportable-events rules are covered in Part 7 (Defined Benefit and Hybrid Plans) and are cross-referenced, not restated, here.

Citations are to primary authority (ERISA Title IV and 29 C.F.R. Chapter XL). Related questions are treated elsewhere: substantive premium, funding, and reportable-events rules in Part 7's PBGC chapter; and plan-termination substance in Part 2 (Plan Documents, Amendments, Mergers, and Terminations).

Sections

Part A is shown in full. The other sections are listed by title; their text is available to subscribers.

Part A — Premium Audits

A1.Authority and the compliance-review tiers

Part 22, ch. 3, § A1

PBGC's premium-filing regime and its authority to audit filings rest on ERISA §4007 and the implementing regulations at 29 C.F.R. Part 4007. Statute: ERISA §4007, 29 U.S.C. §1307; Final reg: 29 C.F.R. Part 4007. PBGC's Premium Compliance Evaluation Program screens filings through electronic data analysis and pension-data matching, then escalates through three tiers as needed: (1) a letter of inquiry seeking clarification on a specific filing item; (2) a limited review requesting plan documents or records on a discrete issue; and (3) an on-site evaluation verifying the full premium-calculation support. Agency guidance — informal: PBGC Premium Compliance Evaluation Program. Common triggers include participant-count discrepancies against Form 5500 or actuarial data, variable-rate premium (VRP) underfunding-calculation errors, and missed or late filings.

A2.Late-payment and late-filing penalties

Part 22, ch. 3, § A2

A late-payment penalty under 29 C.F.R. §4007.8 runs at 0.5% per month (capped at 25% of the unpaid premium) if paid before PBGC's first written delinquency notice ("self-correction"), or 2.5% per month (capped at 50%) if paid after that notice, with a reasonable-cause waiver available; separate late-payment interest applies under 29 C.F.R. §4007.7, tied to the IRC §6621 underpayment rate. Final reg: 29 C.F.R. §§4007.7-.8. A distinct late-filing penalty (not the payment penalty) applies under ERISA §4071, up to a maximum of $2,739 per day (the 2025 amount; PBGC made no 2026 inflation adjustment, 91 Fed. Reg. 25936 (May 12, 2026)). Under PBGC's 1995 penalty policy, PBGC generally assesses $25 per day for the first 90 days and $50 per day after that, with lower amounts for small plans, and it issues multiple past-due notices before assessing. On July 21, 2026, PBGC proposed to codify and replace that policy (comments due Sept. 21, 2026); the proposal is not yet effective. Statute: ERISA §4071; Final reg: 29 C.F.R. §4071.3 (maximum only); Agency guidance — formal: PBGC penalty policy, 60 Fed. Reg. 36837 (July 18, 1995); Proposed reg — no reliance: 91 Fed. Reg. 45739 (July 21, 2026).

A3.Appeal of a premium determination

Part 22, ch. 3, § A3

A premium, interest, or late-payment-penalty determination is reviewed by reconsideration, not by the Appeals Board. The request must be filed within 30 days after the date of the initial determination. The two tracks do not overlap: the 45-day Appeals Board process (Part F) covers other determinations. Final reg: 29 C.F.R. §§4003.1(d)(1), 4003.32.

Part B — Standard Termination Audits

  1. B1The termination-to-audit pipelineSubscribers
  2. B2Audit findings and consequencesSubscribers
  3. B3Electronic filing transitionSubscribers

Part C — Reportable Events as a Compliance-Monitoring Trigger

  1. C1The regime and its functionSubscribers
  2. C2WaiversSubscribers

Part D — §4010 Filings and §4062(e)

  1. D1§4010 annual financial and actuarial reportingSubscribers
  2. D2§4062(e) — substantial cessation of operationsSubscribers
  3. D3The Early Warning ProgramSubscribers

Part E — Missing Participants Program Compliance

  1. E1Scope and the compliance mechanismSubscribers

Part F — General Investigatory Authority and Appeals

  1. F1§4003 investigatory and subpoena powerSubscribers
  2. F2The PBGC Appeals BoardSubscribers

The first Part of each chapter is open to everyone. The remaining sections, with their authority and practice points, are available to subscribers and to clients of ERISA Benefits Law Group, PLLC whose engagement includes access.

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