The Employee Retirement Income Security Act of 1974 (ERISA) created mandatory disclosure and reporting requirements for health and welfare plans. Among those requirements include the obligation to maintain plan documents, distribute Summary Plan Descriptions (SPDs) to employees and file Form 5500, unless an exemption applies.
Failure to perform any of these requirements may result in a fine from the Employee Benefits Security Administration (EBSA), a division of the Department of Labor (DOL).
Last week, the DOL announced annual increases to penalty amounts, including those that fall under ERISA. These amounts are updated annually due to inflation and are as follows:
The penalty for failure to furnish required documents (ex. SPD and Summary Annual Report (SAR)) to a requesting participant remains at $110 per day. In addition, the penalty for failing to furnish a Summary of Benefits and Coverage (SBC), as required by the Affordable Care Act (ACA), also increased from $1,128 per failure to $1,156 per failure.
PrimePay’s ERISA Wrap Solution ensures that clients comply with ERISA’s disclosure and reporting requirements. Click here to learn more about PrimePay’s ERISA Compliance solution.