February 06, 2023

DOL ERISA Plan Penalties Increase for 2023

7 min read

The Department of Labor (DOL) recently released the updated civil monetary penalties applicable to various employee benefits-related violations under ERISA for the 2023 calendar year, captured in the reference chart below.

Penalty amount adjustments effective for penalties assessed after January 15, 2023.

Violation	2022 Penalty Amounts	2023 Penalty Amounts	Applicable to Health & Welfare Plans, 401(k) Plans, Or Both?
Failure or refusal to file an annual report (Form 5500) with the DOL (unless a filing exemption applies)	$2,400 per day	$2,586 per day	Both
Failure of a multiple employer welfare arrangement (MEWA) to file an annual report (Form M-1) with the DOL	$1,746 per day	$1,881 per day	Health & Welfare Plans
Failure to furnish plan-related information requested by the DOL	$171 per day, not to exceed $1,713 per request	$184 per day, not to exceed $1,846 per request	Both
Failure to provide annual notice¹ to employees and information to a State regarding Children’s Health Insurance Program (CHIP) coverage and coordination	$127 per participant per day	$137 per participant per day	Health & Welfare Plans
Failure to provide Summary of Benefits and Coverage (SBC)	Up to $1,264 per failure	Up to $1,362 per failure	Health & Welfare Plans
Genetic Information Nondiscrimination Act (GINA) failures
- Failure to comply with the requirements GINA for health plans	$127 per participant per day	$137 per participant per day	Health & Welfare Plans
- De minimis GINA failures not corrected prior to notice from the DOL	$3,192 per participant (minimum)	$3,439 per participant (minimum)	Health & Welfare Plans
- GINA failures which are not corrected prior to notice from the DOL and are not de minimis	$19,157 per participant (minimum)	$20,641 per participant (minimum)	Health & Welfare Plans
- GINA failure penalty cap on unintentional failures	$638,556 (maximum)	$688,012 (maximum)	Health & Welfare Plans
Failure to provide auto-enrollment notice	$1,899 per day for each failure	$2,046 per day for each failure	401(k) plans
Failure to provide notice of blackout period or notice of diversification rights	$152 per day for each failure	$164 per day for each failure	401(k) plans
Failure to furnish reports (e.g., pension benefit statements) to certain former employees or maintain employee records	$33 per employee	$36 per employee	401(k) plans

Employers are advised to review their plans and plan practices to ensure compliance with ERISA’s requirements and avoid these penalties.

Please reach out to your Risk Strategies representative with any additional questions or contact us directly at benefits@risk-strategies.com

[1] This notice applies to employers with group health plans covering residents of states that provide a premium assistance subsidy under CHIP

The contents of this article are for general informational purposes only and Risk Strategies Company makes no representation or warranty of any kind, express or implied, regarding the accuracy or completeness of any information contained herein. Any recommendations contained herein are intended to provide insight based on currently available information for consideration and should be vetted against applicable legal and business needs before application to a specific client.

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