This summer the Department of Labor issued an interim final rule to adjust the amounts of civil monetary penalties enforced by the Employee Benefits Security Administration (EBSA) under the Employee Retirement Income Security Act of 1974 (ERISA). The adjustments apply to penalties assessed after August 1, 2016, whose violations occurred after November 2, 2015. New penalty amounts include, but are not limited to:
- Failure/refusal to properly file Form 5500: increased from $1,100 per day to $2,063 per day the Form 5500 is late.
- Failure to provide a Summary of Benefits Coverage (SBC): increased from $1,000 per failure to $1,087 per failure.
- Failure to provide required CHIP notices: increased from $100 per day to $110 per day.
Congress also enacted legislation to adjust the levels of these penalties annually for inflation. Future adjustments will be made by January 15th of each year starting in 2017.