To adjust for annual inflation, the Department of Labor (DOL) published the 2020 civil monetary penaltis for certain violations of health and retirement plans subject to the Employee Retirement Income Security Act (ERISA). The DOL must annually adjust these amounts no later than January 15 of each year. The updated penalties for 401(k) and health and welfare plans are oulinted below:
Compliance Failure |
401 (K) Penalties |
|
2019 |
2020 |
|
Failure to timely file Form 5500 |
$2,194 per day |
$2,233 per day |
Failure to provide required notice to participants for plans with automatic contributions (each recipient a separate violation) |
$1,736 per day |
$1,767 per day |
Failure to provide a “blackout” notice |
$139 per day |
$141 per day |
Failure to provide a “diversification” notice |
$139 per day |
$141 per day |
Failure to furnish reports (e.g., pension benefit statements) or maintain employee recrods |
$30 per affected employee |
$31 per affected employee |
Compliance Failure |
Health & Welfare Plan Penalties |
|
2019 |
2020 |
|
Failure to timely file a properly completed ERISA Form 5500 |
$2,194 per day |
$2,233 per day |
Failure to file a 1094 or 1095 return or furnish a statement |
$270 per return/statement |
$270 per return/statement |
Failure to provide Secretary of Labor requested documentation |
$156 per day, not to exceed $1,566 per request |
$159 per day, not to exceed $1,594 per request |
Failure to timely distribute a Summary of Benefits and Coverage (SBC) |
$1,156 per failure |
$1,176 per failure |
Failure to file annual report for Multiple Employer Welfare Arrangments (MEWAs) |
$1,597 per day for each failure |
$1,625 per day for each failure |
Failure to comply with various ACA mandates |
$100 per participant per day |
$100 per participant per day |
Failure to provide notice & information regarding the Children’s’ Health Insurance Program (CHIPRA) |
$117 per participant per day |
$119 per participant per day |
GINA violation |
$117 per participant per day |
$119 per participant per day |
The information and content contained in this blog post are for general informational purposes only, and does not, and is not intended to, constitute legal advice.