The Department of Labor (DOL) published the annual adjustments for 2022 that increase certain penalties applicable to employee benefit plans.
The following updated penalties are applicable to health and welfare plans subject to ERISA.
|Description||2022 Penalty (New)||2021 Penalty (Old)|
|Failure to file Form 5500||Up to $2,400 per day||Up to $2,259 per day|
|Failure of a MEWA to file reports (i.e., M-1)||Up to $1,746 per day||Up to $1,644 per day|
|Failure to provide CHIP Notice||Up to $127 per day per employee||Up to $120 per day per employee|
|Failure to disclose CHIP/Medicare coordination to the State||$127 per day per violation
|$120 per day per violation
|Failure to provide SBCs||Up to $1,264 per failure||Up to $1,190 per failure|
|Failure to furnish plan documents (including SPDs/SMMs) to DOL on request||$171 per day
$1,713 cap per request
|$161 per day
$1,613 cap per request
|Genetic information failures||$127 per day
|$120 per day
|De minimis failures to meet genetic information requirements||$3,192 minimum||$3,005 minimum|
|Failure to meet genetic information requirements – not de minimis failures||$19,157 minimum||$18,035 minimum|
|Cap on unintentional failures to meet genetic information requirements||$638,152 maximum||$601,152 maximum|
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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