Final answer:
The civil penalty prescribed in Section 502 of ERISA may be in an amount equal to 20% of the recovery obtained by the Department of Labor from anyone found to have breached a fiduciary duty under ERISA or to have knowingly participated in such a breach.
Step-by-step explanation:
The civil penalty prescribed in Section 502 of ERISA may be in an amount equal to 20% of the recovery obtained by the Department of Labor from anyone found to have breached a fiduciary duty under ERISA or to have knowingly participated in such a breach.
For example, if the Department of Labor recovers $100,000 from someone who breached a fiduciary duty, the civil penalty would be $20,000.
This penalty serves as a deterrent to individuals who may consider breaching their fiduciary duties or participating in such breaches under ERISA.