The Department of Labor (DOL) recently released the updated civil monetary penalties applicable to various employee benefits-related violations under ERISA for the 2024 calendar year, captured in the reference chart below.
Penalty amount adjustments are effective for penalties assessed after January 15, 2024.
|
Violation |
2023 Penalty Amounts |
2024 Penalty Amounts |
Applicable to Health & Welfare Plans, 401(k) Plans, Or Both? |
|
Failure or refusal to file an annual report (Form 5500) with the DOL (unless a filing exemption applies) |
$2,586 per day |
$2,670 per day |
Both |
|
Failure of a multiple employer welfare arrangement (MEWA) to file an annual report (Form M-1) with the DOL |
$1,881 per day |
$1,942 per day |
Health & Welfare Plans |
|
Failure to furnish plan-related information requested by the DOL |
$184 per day, not to exceed $1,846 per request |
$190 per day, not to exceed $1,906 per request |
Both |
|
Failure to provide annual notice[1] to employees and information to a State regarding Children’s Health Insurance Program (CHIP) coverage and coordination |
$137 per participant per day |
$141 per participant per day |
Health & Welfare Plans |
|
Failure to provide Summary of Benefits and Coverage (SBC) |
Up to $1,362 per failure |
Up to $1,406 per failure |
Health & Welfare Plan |
|
Failure to comply with the requirements Genetic Information Nondiscrimination Act (GINA) for health plans |
$137 per participant per day |
$141 per participant per day |
Health & Welfare Plans |
|
De minimis GINA failures not corrected prior to notice from the DOL |
$3,439 per participant (minimum) |
$3,550 per participant (minimum) |
Health & Welfare Plans |
|
GINA failures which are not corrected prior to notice from the DOL and are not de minimis |
$20,641 per participant (minimum) |
$21,310 per participant (minimum) |
Health & Welfare Plans |
|
GINA failure penalty cap on unintentional failures |
$688,012 (maximum) |
$710,310 (maximum) |
Health & Welfare Plans |
|
Failure to provide auto-enrollment notice |
$2,046 per day for each failure |
$2,112 per day for each failure |
401(k) plans |
|
Failure to provide notice of blackout period or notice of diversification rights |
$164 per day for each failure |
$169 per day for each failure |
401(k) plans |
|
Failure to furnish reports (e.g., pension benefit statements) to certain former employees or maintain employee records |
$36 per employee |
$37 per employee |
401(k) plans |
Employers are advised to review their plans and plan practices to ensure compliance with ERISA’s requirements, as outlined above, in an effort to avoid these penalties.
Please reach out to your Risk Strategies representative with any additional questions or contact us directly at benefits@risk-strategies.com.
[1] This notice applies to employers with group health plans covering residents of states that provide a premium assistance subsidy under CHIP.