The DOL recently issued an interim final rule that increases the civil penalty amounts that may be imposed under the Employee Retirement Income Security Act (ERISA) to account for inflation. The interim final rule increases the civil penalty amounts associated with:
- Failing to file an annual Form 5500
- Failing to provide the annual notice regarding premium assistance under the Children’s Health Insurance Program (CHIP)
- Failing to provide the Summary of Benefits Coverage (SBC), as required by the Affordable Care Act (ACA) For instance, the penalty for failing to file an annual Form 5500 with the DOL increases from $1,100 per day to up to $2,063 per day (unless a filing exemption applies).
In addition, the penalty for failing to furnish plan-related information requested by the DOL increases from $110 per day to $147 per day under the interim final rule. For a complete list of new penalty amounts, contact Bottom Line Benefits today. The increased penalty amounts reflect an initial catch-up adjustment. The new amounts will become effective for civil penalties that are assessed after Aug. 1, 2016, for violations that occurred after Nov. 2, 2015. The DOL will continue to adjust civil penalty amounts for inflation every year, beginning in January 2017.