Increases in Certain ERISA Civil Penalties
Contributed by Kimberly Flett
The DOL published in the Federal Register on June 30, 2016, adjustments to civil monetary penalties that impacts items under Employee Retirement Income Security Act (ERISA) reporting requirements. Effective August 1, 2016, the potential penalty for failure to timely file a Form 5500 with the DOL was increased from $1,100 per day to $2,063. Additional increases for ERISA violations include failure to furnish retirement plan benefit statements from $11 to $28 per employee; failure to furnish actuarial reports upon request from $1,000 per day to $1,632; failure to furnish a blackout notice or notice of the right to divest employer securities from $100 per day to $131.
There have been no changes to the IRS Form 5500 late filing fees (which currently is $25 per day to a maximum of $15,000) or the DOL’s Delinquent Filer Voluntary Compliance Program (DFVCP) fees, which are capped at a range from $1,500 for small plans filing more than one year of returns to $4,000 for large plans.
This article originally appeared in BDO USA, LLP’s “EBP Commentator” blog (Fall 2016). Copyright © 2016 BDO USA, LLP. All rights reserved. www.bdo.com