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, to distribute Summary Plan Descriptions (SPDs) to employees, and to 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).
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On Jan. 15, 2020, 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 (e.g., 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 $1,156 per failure to $1,176 per failure.
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Disclaimer: Please note that this is not all-inclusive. Our guidance is designed only to give general information on the issues actually covered. It is not intended to be a comprehensive summary of all laws which may be applicable to your situation, treat exhaustively the subjects covered, provide legal advice, or render a legal opinion. Consult your own legal advisor regarding the specific application of the information to your own plan.