On January 10, 2025, the Department of Labor published in the Federal Register several inflation-adjusted penalty amounts for certain failures associated with Retirement and Health and Welfare plans. These increases for Health and Welfare plans are:
- Failure to accurately file a plan annual report (Form 5500 series); the per day penalty increases from $2,670 to $2,739.
- Failure to provide DOL-requested documents; the per day penalty increases from $190 to $195 (not to exceed $1,956 per request)
- Failure to provide the Summary of Benefits and Coverage (“SBC”); penalty increases from $1,406 to $1,443 per failure.
- Failure to comply with the Genetic Information Nondiscrimination Act (GINA), and failure to comply with disclosure requirements under Medicaid or the Children’s Health Insurance Program (CHIP); the per day penalty increases from $141 to $145 per participant.
- Failure to meet filing requirements for multiple employer welfare arrangements (MEWA); penalty increases from $1,942 to $1,992 per day.
- The penalty for failure to provide plan documents to participants and/or beneficiaries, after 30 days of the request, remains $110 per day.
These adjustments for 2025 are under the authority of the Federal Civil Penalties Inflation Adjustment Act and are in effect for any of the above-mentioned penalties that are assessed after January 15, 2025.
In the ever-changing legislative landscape, employers can help protect themselves with TASC ERISA, our comprehensive solution that helps manage all necessary documents, forms, and recordkeeping associated with the Employee Retirement Income Security Act (ERISA) of 1974. We prepare your ERISA wrap plan document/SPD and, if applicable, prepare your Form 5500. TASC provides the best third-party ERISA administration for employers looking for experience, expertise, and education while mitigating risk.
If you are interested to see how TASC ERISA can help protect your organization from noncompliance and penalties, request a proposal today!
