2019 DOL Penalty Amounts for ERISA Violations
February 28, 2019
The Department of Labor (DOL) recently announced increased 2019 penalties for employee benefit plans under the Employee Retirement Income Security Act of 1974 (ERISA). The increases generally apply to penalties that involve employee benefit reporting and disclosure failures if the penalty is assessed after January 23, 2019 and if the violation occurred after November 2, 2015.
The 2015 Inflation Adjustment Act directs the DOL to annually adjust for inflation certain penalties for specified ERISA violations. The law specifically requires the DOL to adjust penalties applicable to health and welfare benefit plans that the agency regulates under ERISA. Employers should review their health plans to ensure compliance with ERISA’s requirements in order to avoid penalties. For example, employers should make sure they are complying with ERISA’s reporting and disclosure rules, including Form 5500, annual CHIP notice and SBC requirements.
The increased amounts below apply to penalties assessed after January 23, 2019:
|
Description of Violation |
2019 Penalty |
2018 Penalty |
|
Failure or refusal to file a Form 5500 |
Up to $2,194 per day |
Up to $2,140 per day |
|
Failure to provide documents and information requested by the DOL |
Up to $156 per day not to exceed $1,566 per request |
Up to $152 per day not to exceed $1,527 per request |
|
Failure to provide reports to certain former participants and beneficiaries & failure to maintain records |
Up to $30 per day |
Up to $29 per day |
|
Failure by an employer to inform employees of CHIP coverage opportunities |
Up to $117 per day per employee |
Up to $114 per day per employee |
|
Violations of the Genetic Information Nondiscrimination Act (GINA), such as establishing eligibility rules based on genetic information or requesting genetic information for underwriting purposes |
Up to $117 per participant per day |
Up to $114 per participant per day |
|
Failure to provide annual Summary of Benefits Coverage (SBC) |
Up to $1,156 per failure |
Up to $1,128 per failure |
For additional information: https://www.dol.gov/asp/2019-inflation-adjustments.pdf