On July 1, 2016, the U.S. Department of Homeland Security and the U.S. Department of Labor (“DOL”) jointly issued an interim final rule that significantly increases the amount of various civil penalties applicable to certain ERISA violations. The increased amounts, which have been adjusted for inflation pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended, apply to penalties assessed on and after August 1, 2016. The increases include penalties for:
Health & Welfare Plans
Failure to file a Form 5500: $2,063/day (up from $1,100/day)
Failure to file a Form M-1: $1,502/day (up from $1,100/day)
Failure to provide documents requested by the Secretary of Labor: $147/day subject to a $1,472 maximum. (up from $110 per day subject to a $1,100 maximum)
Failure to comply with the Genetic Information Nondisclosure Act: $110/day/person (up from $100/day/person) subject to a minimum $2,745/day/person (up from $2,500/day/person) for de minimis violations and $16,473/day/person (up from $15,000/day/person) for violations that are more than de minimis; and further, in the case of unintentional failures, subject to a maximum of the lesser of 10% of the aggregate amount paid by the plan sponsor for group health plans ion the prior fiscal year of $549,095 (up from $500,000).
Willful failure to provide a Summary of Benefits and Coverage: $1,087 per failure (up from $1,000 per failure).
Pension & Retirement Plans
Failure to file a Form 5500: $2,063/day (up from $1,100/day)
Failure to furnish reports (e.g., pension benefit statements) to certain former participants and beneficiaries: $28/failure (up from $11/failure)
Failure to provide documents requested by the Secretary of Labor: $147/day subject to a $1,472 maximum per request (up from $110 per day subject to a $1,100 maximum)
Failure to disclose certain documents upon request under ERISA 101(k) and (l), (regarding multiemployer plan liability information): $1,632/day (up from $1,000/day)
Failure to provide “blackout notice” and right of divesture notice (defined contribution plans): $131/day (up from $100/day)
Failure by an endangered status multiemployer plan to adopt a funding improvement plan or meet benchmark: $1,296/failure (up from $1,100/failure)
Additional Resources:
- DOL Fact Sheet summarizing the interim rule
- Chart showing the adjusted figures