Based on the enrollment records as of June 30 of each fiscal year, the Retirement Agency shall impose a penalty of $100 per employee per year on a participating employer for any employee who: Began employment with the participating employer: Before April 1 of the same fiscal year; or In any previous fiscal year; Is a member of the State system as a condition of employment; and Has not been properly enrolled in accordance with Regulation .02 of this chapter. In the sole discretion of the Executive Director, the Retirement Agency may waive any penalty imposed under §A of this regulation, if the participating employer addresses the enrollment failure in a manner satisfactory to the Retirement Agency.