On Jan. 18, 2017, the DOL published a final rule adjusting for inflation civil monetary penalties under ERISA. As background, federal law requires agencies to adjust their civil monetary penalties for inflation on an annual basis. The DOL last adjusted certain penalties under ERISA in July of 2016 (as discussed in the July 12, 2016, edition of Compliance Corner).
Among other changes, the DOL is increasing the following penalties that may be levied against sponsors of ERISA-covered plans:
- The penalty for a failure to file Form 5500 will increase from a maximum of $2,063 per day to a maximum of $2,097 per day.
- The penalty for a failure to furnish information requested by the DOL will increase from a maximum of $147 per day to a maximum of $149 per day.
- The penalty for a failure to provide CHIP notices will increase from a maximum of $110 per day to a maximum of $112 per day.
- The penalty for a failure to comply with GINA will increase from $110 per day to $112 per day.
- The penalty for a failure to furnish SBCs will increase from a maximum of $1,087 per failure to a maximum of $1,105 per failure.
- The penalty for a failure to file Form M-1 (for MEWAs) will increase from $1,502 to $1,527.
The regulations also increased penalties resulting from other reporting and disclosure failures.
These new amounts will go into effect for penalties assessed after Jan. 13, 2017, for violations that occurred after Nov. 2, 2015. The DOL will continue to adjust the penalties no later than Jan. 15 of each year, and will post any changes to penalties on their website.
For more information on the new penalties, including the complete listing of changed penalties, please consult the final rule below. Additionally, see your advisor if you have questions about the imposition of these penalties.
Final Rule »