The Department of Labor (DOL) recently issued an interim final rule that increases the penalty amounts that may be imposed under the Employee Retirement Income Security Act (ERISA).
These increases, which were designed to account for inflation, are associated with penalties for:
- 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 example, the penalty for failing to file an annual Form 5500 increases from $1,100 per day to up to $2,063 per day. In addition, the penalty for failing to furnish plan-related information requested by the DOL increases from $110 per day to $147 per day.
The new amounts will become effective for civil penalties that are assessed after Aug. 1, 2016, for violations that occurred after Nov. 2, 2015.
Compliance Support from CBG Benefits
To help our clients avoid facing penalties such as the ones mentioned in this article, we take a proactive approach year-round. This includes providing a personalized annual Compliance Calendar, sending weekly email bulletins and individual compliance alerts, sharing and reviewing Compliance Checklists, supporting internal HR audits, and more.
If you’d like to learn how we can help your organization in those areas, please contact our team at 781-759-1222.