DOL Announces 2021 Annual Inflation Adjustments for Noncompliance
The Department of Labor (DOL) announced 2021 annual inflation adjustments to the civil monetary penalties for various violations pertaining to health and welfare benefit plans as well as pension and retirement plans. The 2021 adjustments are effective for penalties assessed after January 15, 2021, with respect to violations occurring after November 2, 2015.
| Description of Health and Welfare Plan Violation | 2021 Penalty | 2020 Penalty |
| Failure or refusal to file a Form 5500 | $2,259 per day | $2,233 per day |
| Failure to provide documents and information requested by the DOL | $161 per day, not to exceed $1,613 per request | $159 per day, not to exceed $1,594 per request |
| Failure to provide reports to certain former participants and beneficiaries or failure to maintain records | $31 per day | $31 per day |
| Failure by an employer to inform employees of CHIP coverage opportunities | $120 per day per employee | $119 per day per employee |
| Violations of the Genetic Information Nondiscrimination Act (GINA), such as establishing eligibility rules based on genetic information or requesting genetic information for underwriting purposes | $120 per participant per day | $119 per participant per day |
| Failure to provide annual Summary of Benefits Coverage (SBC) | $1,190 per failure | $1,176 per failure |
Employers should review the Final Rule carefully and ensure that they are meeting DOL requirements in order to avoid any potential penalties related to their plans. Although the adjustments for inflation reflect the maximum penalties that the DOL can impose and lower penalties may be assessed, failure to comply with DOL requirements can still prove extremely costly for employers.