On January 11, 2024, the U.S. Department of Labor (DOL) published a final rule adjusting civil monetary penalties under the Employee Retirement Income Security Act of 1974 (ERISA). These annual adjustments relate to a wide range of ERISA compliance issues. The DOL last adjusted certain penalties under ERISA in January 2023.
Below Are Highlights of the 2024 Increased Penalties That May Be Levied Against Plan Sponsors of ERISA Health and Welfare Plans:
- Failure to file a timely Form 5500. Penalty increases from $2,586 to $2,670 per day for each day that the filing is late.
- Failure to furnish information requested by the DOL. Penalty increases from $184 per day, not to exceed $1,846 per request, to $190 per day, not to exceed $1,906 per request.
- Penalties for failure to comply with the Genetic Information Nondiscrimination Act (GINA) and failure to provide Children’s Health Insurance Program (CHIP) notices. Penalty increases from $137 to $141 per day.
- Failure to furnish Summary of Benefits Coverage (SBC). Penalty increases from $1,362 to $1,406 maximum per failure.
- Failure to file a timely Form M-1 for a Multiple Employer Welfare Arrangement (MEWA). Penalty increases from $1,881 to $1,942 per day.
- Failure to furnish Summary Plan Description (SPD) upon written request. Penalty remains at $110 per day.
The adjusted amounts above are effective for penalties assessed after January 15, 2024 for violations that occurred after November 2, 2015. The DOL continues to adjust penalties by January 15 of each year as they have done since January 2017.
To avoid these penalties, employers should ensure ERISA compliance for all benefit plans and stay updated on ERISA’s requirements. For complete details on the new penalties, including the complete list of changed penalties, please consult the Final Rule (govinfo.gov).
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