The Department of Labor (DOL) recently announced increases in many civil penalties associated with ERISA plan violations. For example, the maximum penalty for failing to file an annual Form 5500 report will rise from $1,100 per day to $2,063 per day. The maximum penalty for failing to provide a summary of benefits and coverage (SBC) required by the Affordable Care Act will increase from $1,000 to $1,087 per failure.
The new penalty amounts are applicable to civil penalties assessed after August 1, 2016. Beginning in 2017, the DOL will adjust the new ERISA penalty amounts annually for inflation, no later than January 15 of each year.