Feb 01, 2021
DOL Penalties Increase for 2021
Category:
Compliance Bulletins
The Department of Labor (DOL) published the annual adjustments for 2020 that increase certain penalties applicable to employee benefit plans.
Annual Penalty Adjustments for 2021
The following updated penalties are applicable to health and welfare plans subject to ERISA.
| Description | 2020 Penalty | 2021 Penalty |
|---|---|---|
| Failure to file Form 5500 | Up to $2,233 per day | Up to $2,259 per day |
| Failure of a MEWA to file reports | Up to $1,625 per day | Up to $1,644 per day |
| Failure to provide CHIP Notice | Up to $119 per day per employee | Up to $120 per day per employee |
| Failure to disclose CHIP/Medicare Coordination to the State | $119 per day per violation (per participant/beneficiary) | $120 per day per violation (per participant/beneficiary) |
| Failure to provide SBCs | Up to $1,176 per failure | Up to $1,190 per failure |
| Failure to furnish plan documents (including SPDs/SMMs) to DOL on request | $159 per day $1,594 cap per request |
$161 per day $1,613 cap per request |
| Genetic information failures | $119 per day (per participant/beneficiary) |
$120 per day (per participant/beneficiary) |
| De minimis failures to meet genetic information requirements | 2,970 minimum | $3,005 minimum |
| Failure to meet genetic information requirements – not de minimis failures | $17,824 minimum | $18,035 minimum |
| Cap on unintentional failures to meet genetic information requirements | $594,129 maximum | $601,152 maximum |
Employer Action
Private employers, including non-profits, should ensure employees receive required notices timely (SBC, CHIP, SPD, etc.) to prevent civil penalty assessments. In addition, employers should ensure Form 5500s are properly and timely filed, if applicable. Finally, employers facing document requests from EBSA should ensure documents are provided timely, as requested.
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