The Department of Labor recently announced the 2024 inflation adjustments for ERISA-related penalties applicable to health and welfare and retirement plans. Applicable penalties increased for 2024 as follows:
- Failure to furnish or maintain records - $37 per participant
- Failure to file Form 5500 - $2670
- Failure to notify participants of certain Internal Revenue Code benefit restrictions or to provide an automatic contribution arrangement notice - $2,112 per day
- Failure to provide participants either a blackout notice or a notice of the right to divest employer securities - $169 per participant per day
- Failure to inform employees of Children’s Health Insurance Program coverage - $141 per employee per day
- Failure to provide information about coverage coordination to a State in a timely fashion- $141 per employee per day
- Failure to provide a Summary of Benefits Coverage - $1,406
- Failure to provide materials requested by the DOL - $190 per day, not to exceed $1,906 per request
- Failure to provide certain genetic information - $141 per employee per day
- De minimis failure to meet genetic information requirements – minimum of $3550
- Non de minimis Failure to meet genetic information requirements - minimum of $21,310
- Unintentional failure relating to genetic information – cap of $710,310
**In order to avoid these penalties, review your notice obligations to employees and participants and make sure your plans are in compliance with your notice and reporting requirements. If you receive correspondence from a state or federal regulator do not ignore it.**
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