Note: The following article is an update to our recurring ERISA penalties post and includes excerpts from our previous blog titled, ERISA Penalties Increase in 2020.
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).
The DOL recently 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 failing to furnish a Summary of Benefits and Coverage (SBC), as required by the Affordable Care Act (ACA), also increased from $1,190 per failure to $1,264 per failure.
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