Reformat code doesn't honor continuation indents

In PyCharm when I 'Reformat Code' it creates 'PEP8: continuation line under-indented for hanging indent' warnings, which requires me to manually clean up the problem. Why doesn't 'Reformat Code' honor what I've set in my preferences?

Preferences > Editor > Code Style > Python 
Tab size: 2, Indent: 2, Continuation Indent: 4

Before (4 spaces, no warnings):

svc_schema = {
    "$schema": "http://json-schema.org/draft-03/schema",
    "properties": {
        "circuit_id": {"required": True, "type": "string"},
        "port_type": {"required": True, "type": "string"},
        "profile": {"required": True, "type": "string"},
        "service_id": {"required": True, "type": "string"},
        "status": {"required": False, "type": "string"}
    }
}

After 'Reformat Code' (2 spaces, now with PEP8 warnings):

svc_schema = {
  "$schema": "http://json-schema.org/draft-03/schema",
  "properties": {
    "circuit_id": {"required": True, "type": "string"},
    "port_type": {"required": True, "type": "string"},
    "profile": {"required": True, "type": "string"},
    "service_id": {"required": True, "type": "string"},
    "status": {"required": False, "type": "string"}
  }
}