2023 Penalty Amounts For Health And Welfare And 401(K) Plans
On January 13, 2023, the U.S. Department of Labor (“DOL”) published its annual announcement of civil monetary penalties for various employee benefits-related violations under ERISA, as in effect for calendar year 2023.
To encourage compliance with the law, ERISA imposes various sanctions, including fines, which are subject to adjustment each year for inflation. Legislation enacted in 2015 requires that the annual inflation-related adjustments be issued by no later than January 15th of each year.
Penalty amount adjustments are effective for penalties assessed after January 15, 2023.
Some of the more commonly encountered penalty amounts for Health and Welfare plans and 401(k) plans are listed below.
2023 Penalty Amounts for ERISA Health & Welfare Plans:
COMPLIANCE FAILURE |
2023 |
2022 |
FAILURE TO TIMELY FILE A PROPERLY COMPLETED ERISA FORM 5500 |
$2,586 PER DAY | $2,400 PER DAY |
FAILURE TO PROVIDE SECRETARY OF LABOR REQUESTED DOCUMENTATION |
$184 PER DAY, NOT TO EXCEED $1,846 PER REQUEST | $171 PER DAY, NOT TO EXCEED $1,713 PER REQUEST |
FAILURE TO TIMELY DISTRIBUTE A SUMMARY OF BENEFITS AND COVERAGE (SBC) |
$1,362 PER FAILURE | $1,264 PER FAILURE |
FAILURE TO FILE ANNUAL REPORT FOR MULTIPLE EMPLOYER WELFARE ARRANGEMENTS (MEWAS) |
$1,881 PER DAY FOR EACH FAILURE |
$1,746 PER DAY FOR EACH FAILURE |
FAILURE TO PROVIDE NOTICE & INFORMATION REGARDING THE CHILDREN’S’ HEALTH INSURANCE PROGRAM (CHIPRA) |
$137 PER PARTICIPANT PER DAY |
$127 PER PARTICIPANT PER DAY |
GINA VIOLATION |
$137 PER PARTICIPANT PER DAY |
$127 PER PARTICIPANT PER DAY |
2023 Penalty Amounts for 401(k) Plans:
COMPLIANCE FAILURE |
2023 |
2022 |
FAILURE TO TIMELY FILE A PROPERLY COMPLETED ERISA FORM 5500 |
$2,586 PER DAY | $2,400 PER DAY |
FAILURE TO PROVIDE SECRETARY OF LABOR REQUESTED DOCUMENTATION |
$184 PER DAY, NOT TO EXCEED $1,846 PER REQUEST | $171 PER DAY, NOT TO EXCEED $1,713 PER REQUEST |
FAILURE TO PROVIDE AUTO-ENROLLMENT NOTICE |
$2,046 PER FAILURE | $1,899 PER FAILURE |
FAILURE TO PROVIDE “BLACKOUT” NOTICE OR RIGHT OF DIVERSIFICATION NOTICE |
$164 PER FAILURE | $152 PER FAILURE |
FAILURE TO FURNISH REPORTS (E.G., BENEFIT STATEMENTS) OR MAINTAIN RECORDS |
$36 PER EMPLOYEE | $33 PER EMPLOYEE |
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.
