The Department of Labor published the annual adjustments for 2022 that increase certain penalties applicable to employee benefit plans.
The Department of Labor (DOL) published the annual adjustments for 2022 that increase certain penalties applicable to employee benefit plans.
Annual Penalty Adjustments for 2022
The following updated penalties are applicable to health and welfare plans subject to ERISA.
| Description | 2022 Penalty (New) | 2021 Penalty (Old) |
|---|---|---|
| Failure to file Form 5500 | Up to $2,400 per day | Up to $2,259 per day |
| Failure of a MEWA to file reports (i.e., M-1) | Up to $1,746 per day | Up to $1,644 per day |
| Failure to provide CHIP Notice | Up to $127 per day per employee | Up to $120 per day per employee |
| Failure to disclose CHIP/Medicare coordination to the State | $127 per day per violation (per participant/beneficiary) | $120 per day per violation (per participant/beneficiary) |
| Failure to provide SBCs | Up to $1,264 per failure | Up to $1,190 per failure |
| Failure to furnish plan documents (including SPDs/SMMs) to DOL on request | $171 per day $1,713 cap per request | $161 per day $1,613 cap per request |
| Genetic information failures | $127 per day (per participant/beneficiary) | $120 per day (per participant/beneficiary) |
| De minimis failures to meet genetic information requirements | $3,192 minimum | $3,005 minimum |
| Failure to meet genetic information requirements – not de minimis failures | $19,157 minimum | $18,035 minimum |
| Cap on unintentional failures to meet genetic information requirements | $638,152 maximum | $601,152 maximum |
Employer Action
Private employers, including non-profits, should ensure employees receive required notices timely (SBC, CHIP, SPD, etc.) to prevent civil penalty assessments. In addition, employers should ensure Form 5500s are properly and timely filed, if applicable. Finally, employers facing document requests from EBSA should ensure documents are provided timely, as requested.
This document is designed to highlight various employee benefit matters of general interest to our readers. It is not intended to interpret laws or regulations, or to address specific client situations. You should not act or rely on any information contained herein without seeking the advice of an attorney or tax professional.