Page:United States Statutes at Large Volume 122.djvu/910

 12 2 STA T .8 8 7PUBLIC LA W 11 0– 2 3 3 —M A Y 21, 2008 ‘ ‘ (I)begin ning o n th e da te suc h f ai l u r e first occurs and ‘‘(II) ending on the date the failure is corrected . ‘‘( C ) MIN I MU M PE N ALT IE SWH E R E F AILURE D IS COV- ERED. —N ot w ithstanding clauses (i) and (ii) of sub p ara- graph ( D )

‘‘(i) IN G ENERAL.—In the case of 1 or m ore failures with respect to a participant or beneficiar y — ‘‘(I) which are not corrected before the date on which the plan recei v es a notice from the S ec- retary of such violation; and ‘‘(II) which occurred or continued during the period involved; the amount of penalty imposed by subparagraph ( A ) by reason of such failures with respect to such partici- pant or beneficiary shall not be less than $2,50 0. ‘‘(ii) H IGHER MINIMUM PENALT Y WHERE VIOLATIONS ARE MORE THAN DE MINIMIS.— T othee x tent violations for which any person is liable under this paragraph for any year are more than de minimis, clause (i) shall be applied by substituting ‘$15,000 ’ for ‘$2,500’ with respect to such person. ‘‘(D) L IMITATIONS.— ‘‘(i) P ENALTY NOT TO APPLY WHERE FAILURE NOT DISCOVERED E X ERCISING REASONA B LE DILIGENCE.—No penalty shall be imposed by subparagraph (A) on any failure during any period for which it is established to the satisfaction of the Secretary that the person otherwise liable for such penalty did not k now, and exercising reasonable diligence would not have known, that such failure existed. ‘‘(ii) PENALTY NOT TO APPLY TO FAILURES COR- RECTED WITHIN CERTAIN PERIODS.—No penalty shall be imposed by subparagraph (A) on any failure if— ‘‘(I) such failure was due to reasonable cause and not to willful neglect; and ‘‘(II) such failure is corrected during the 3 0- day period beginning on the first date the person otherwise liable for such penalty knew, or exer- cising reasonable diligence would have known, that such failure existed. ‘‘(iii) O VERALL LIMITATION FOR UNINTENTIONAL FAILURES.—In the case of failures which are due to reasonable cause and not to willful neglect, the penalty imposed by subparagraph (A) for failures shall not exceed the amount e q ual to the lesser of— ‘‘(I) 10 percent of the aggregate amount paid or incurred by the plan sponsor (or predecessor plan sponsor) during the preceding taxable year for group health plans; or ‘‘(II) $500,000. ‘‘( E ) W AIVER BY SECRETARY.—In the case of a failure which is due to reasonable cause and not to willful neglect, the Secretary may waive part or all of the penalty imposed by subparagraph (A) to the extent that the payment of such penalty would be excessive relative to the failure involved.

�