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DOL penalty inflation adjustments

The Department of Labor (DOL) recently finalized regulations containing civil penalty inflation adjustments for 2018 in accordance with the Federal Civil Penalties Inflation Adjustment Act of 2015 (the “Act”). The Act requires the DOL publish annual inflation adjustments no later than Jan.15 for all years after 2016.

Increased penalty amounts for some of the more common ERISA violations related to employee welfare plans are as follows:

Violation Penalty for violations occurring between Jan. 13, 2017 through Jan. 2, 2018 Increased penalty for violations occurring after Jan. 2, 2018
Failure to file Form 5500
Note: Late filers who voluntarily submit overdue Forms 5500 pay reduced penalties under the Delinquent Filer Voluntary Correction Program.
$2,097 per day per plan $2,140 per day per plan
Failure to file Form M-1 (annual MEWA filing) $1,527 per day $1,558 per day
Failure to timely provide a compliant Summary of Benefits and Coverage per Affordable Care Act requirements $1,105 per failure $1,128 per failure
Failure to comply with Medicaid/CHIP notice requirements $112 per day per employee $114 per day per employee
Violation of Genetic Information Nondisclosure Act (GINA) by group health plan sponsor or health insurer $112 per day per participant $114 per day per participant
Failure to furnish employee benefits documents (including plan documents, summary plan descriptions and summary of material modifications) to the DOL upon request $149 per day (not to exceed $1,496) $152 per day (not to exceed $1,527)

If you have questions, please contact Lockton Compliance Services.