On January 15, 2020, the DOL published a final rule adjusting civil monetary penalties under ERISA. As background, the annual adjustments relate to a wide range of compliance issues and are based on the percentage increase in the consumer-price index-urban (CPI-U) from October of the preceding year. The DOL last adjusted certain penalties under ERISA in January of 2019.
*Failure to file Form 5500 maximum penalty increases from $2,194 to $2,233 per day that the filing is late
*Failure to furnish information requested by the DOL penalty increases from $156 to $159 maximum per day
*Penalties for a failure to comply with GINA and a failure to provide CHIP notices increases from $117 to $119 maximum per day
*Failure to furnish SBCs penalty increases from $1,156 to $1,176 maximum per failure
*Failure to file Form M-1 (for MEWAs) penalty increases from $1,597 to $1,625 per day
These adjusted amounts are effective for penalties assessed after January 15, 2020, for violations that occurred after November 2, 2015. The DOL will continue to adjust the penalties no later than January 15 of each year and will post any changes to penalties on their website.
To avoid the imposition of penalties, employers should ensure ERISA compliance for all benefit plans and stay updated on ERISA’s requirements. For more information on the new penalties, including the complete listing of changed penalties, please consult the final rule below.
Source: NFP BenefitsPartners