EBSA Penalty Changes: What Employers Should Know
The Employee Benefit Security Administration (EBSA) recently released increases to certain benefit plan penalties to account for inflation. Want to avoid the penalties? While we won’t recap all of them here, here are some of the ones most pertinent to employers:
- Penalty for failure to provide an SBC increased from $1,128 to $1,156 per participant.
- Penalty for failure or refusal to file an annual report (Form 5500) increased from $2,140 to $2,194 per day.
- Penalty for failure to provide the SPD and/or related information to the Department of Labor (DOL) upon request increased from $142 per day to $156 per day, and from $1,527 per request up to $1,566 per request (note this penalty is NOT for failure to provide the document to participants).
- Penalty for failure to notify participants of CHIP or Medicaid coverage opportunities increased from $114 per day to $117 per day.
These penalties are effective for penalties assessed after January 23, 2019. For more information on these and other changed penalties, click here.