DOL Announces Increased ERISA Penalties 2021

Compliance Fines & Penalties (2021)

Depending on the compliance violation the Department of Labor (DOL), Internal Revenue Service (IRS) or Department of Health & Human Services (HHS) may impose fines or penalties. Below are a few possible examples.

Failure to provide written requested ERISA plan documents, Summary Plan Descriptions,

Summary of material modifications, etc.

 

$119 per day up to $594,129

 

DOL

 

Late 5500 Report

$25 per day up to $15,000 – IRS

$1,100 per day, no cap – DOL

IRS

DOL

Failure to File annual 5500 Report

$2,259 per day

DOL

Failure to furnish statement of benefits or to

maintain records

 

$31 per employee

 

DOL

Failure to notify plan participants of benefit

restrictions and/or limitations

 

$1,788 per day

 

DOL

Failure to furnish automatic contribution

arrangement notice

 

$1,788 per day

 

DOL

Failure to furnish employee benefit plan

documents to DOL upon request

$161 per day up to $1,613 per

request

 

DOL

Failure to inform employees of Medicaid/CHIP

coverage opportunities

 

$120 per day per employee

 

DOL

 

GINA violation

 

$120 per day per participant

 

DOL

Failure to provide Summary of Benefits Coverage

(SBC)

 

Up to $1,190 per failure

 

DOL

FMLA posting & notice violation

$176 for each offence

DOL

Allowing premiums to be paid on a pre-tax basis for covered benefits without having either a Premium Only Plan (POP) document or Flexible

Spending Account (FSA) document.

Penalty: Employer can lose the ability to allow premiums on a

pre-tax basis.

 

 

IRS

 

HIPAA violations

$119 to $59,522 per violation up to

$1,785,651.

 

DOL or HHS

MEWA – failure or refusal to file a complete or

accurate Form M-1

 

$1,644 a day

 

DOL

Other – This is only a partial list of possible fines

and penalties

  
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