[Code of Federal Regulations]
[Title 29, Volume 9]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR2570.65]

[Page 567-568]
 
                             TITLE 29--LABOR
 
 CHAPTER XXV--EMPLOYEE BENEFITS SECURITY ADMINISTRATION, DEPARTMENT OF 
                                  LABOR
 
PART 2570_PROCEDURAL REGULATIONS UNDER THE EMPLOYEE RETIREMENT INCOME 
SECURITY ACT--Table of Contents
 
 Subpart C_Procedures for the Assessment of Civil Penalties Under ERISA 
                            Section 502(c)(2)
 
Sec. 2570.65  Consent order or settlement.

    For 502(c)(2) civil penalty proceedings, the following shall apply 
in lieu of Sec. 18.9 of this title.
    (a) General. At any time after the commencement of a proceeding, but 
at least five (5) days prior to the date set for hearing, the parties 
jointly may move to defer the hearing for a reasonable time to permit 
negotiation of a settlement or an agreement containing findings and an 
order disposing of the whole or any part of the proceeding. The 
allowance of such and the duration thereof shall be in the discretion of 
the administrative law judge, after consideration of such factors as the 
nature of the proceeding, the requirements of the public interest, the 
representations of the parties and the probability of reaching an 
agreement which will result in a just disposition of the issues 
involved.
    (b) Content. Any agreement containing consent findings and an order 
disposing of a proceeding or any part thereof shall also provide:
    (1) That the order shall have the same force and effect as an order 
made after full hearing;
    (2) That the entire record on which any order may be based shall 
consist solely of the notice and the agreement;
    (3) A waiver of any further procedural steps before the 
administrative law judge;
    (4) A waiver of any right to challenge or contest the validity of 
the order and decision entered into in accordance with the agreement; 
and
    (5) That the order and decision of the administrative law judge 
shall be final agency action.
    (c) Submission. On or before the expiration of the time granted for 
negotiations, but, in any case, at least five (5) days prior to the date 
set for hearing, the parties or their authorized representative or their 
counsel may:
    (1) Submit the proposed agreement containing consent findings and an 
order to the administrative law judge; or
    (2) Notify the administrative law judge that the parties have 
reached a full settlement and have agreed to dismissal of the action 
subject to compliance with the terms of the settlement; or
    (3) Inform the administrative law judge that agreement cannot be 
reached.
    (d) Disposition. In the event a settlement agreement containing 
consent findings and an order is submitted within the time allowed 
therefore, the administrative law judge shall issue a decision 
incorporating such findings and agreement within thirty (30) days of his 
receipt of such document. The decision of the administrative law judge 
shall incorporate all of the findings, terms, and conditions of the 
settlement agreement and consent order of the parties. Such decision 
shall become final agency action within the meaning of 5 U.S.C. 704.
    (e) Settlement without consent of all parties. In cases in which 
some, but not all, of the parties to a proceeding submit a consent 
agreement to the administrative law judge, the following procedure shall 
apply:
    (1) If all of the parties have not consented to the proposed 
settlement submitted to the administrative law judge,

[[Page 568]]

then such non-consenting parties must receive notice, and a copy, of the 
proposed settlement at the time it is submitted to the administrative 
law judge;
    (2) Any non-consenting party shall have fifteen (15) days to file 
any objections to the proposed settlement with the administrative law 
judge and all other parties;
    (3) If any party submits an objection to the proposed settlement, 
the administrative law judge shall decide within thirty (30) days after 
receipt of such objections whether he shall sign or reject the proposed 
settlement. Where the record lacks substantial evidence upon which to 
base a decision or there is a genuine issue of material fact, then the 
administrative law judge may establish procedures for the purpose of 
receiving additional evidence upon which a decision on the contested 
issues may reasonably be based;
    (4) If there are no objections to the proposed settlement, or if the 
administrative law judge decides to sign the proposed settlement after 
reviewing any such objections, the administrative law judge shall 
incorporate the consent agreement into a decision meeting the 
requirements of paragraph (d) of this section.