Table of Adjusted Penalties for Violations of Select ERISA Requirements

The below table reflects the DOL's 2019 annual inflation adjustments to the civil money penalties for violations of certain requirements under ERISA, effective January 23, 2019.

ERISA Provision	Description of Violation	Maximum 2019 Penalty (As Adjusted)
ERISA § 209(b) (29 U.S.C. §1059(b))	Failure to furnish certain reports (such as pension benefit statements) or to maintain records	$30
ERISA § 502(c)(2) (29 U.S.C. § 1132(c)(2))	Failure or refusal to properly file a plan's annual report (Form 5500)	$2,194
ERISA § 502(c)(4) (29 U.S.C. § 1132(c)(4))	Failure to (i) notify participants of certain benefit restrictions or limitations under Internal Revenue Code (Code) Section 436(f); (ii) for multiemployer plans, (A) provide certain financial and actuarial reports and (B) provide estimates of withdrawal liability; and (iii) furnish automatic contribution arrangement notices (QACA notices) (see Standard Document, Safe Harbor Notice for Qualified Retirement Plans with Optional QACA Provisions)	$1,736
ERISA § 502(c)(5) (29 U.S.C. § 1132(c)(5))	Failure of a multiple employer welfare arrangement (MEWA) to file an annual report	$1,597
ERISA § 502(c)(6) (29 U.S.C. § 1132(c)(6))	Failure to provide information requested by the Secretary of Labor under ERISA Section 104(a)(6)	$156 per day, not to exceed $1,566 per request
ERISA § 502(c)(7) (29 U.S.C. § 1132(c)(7))	Failure to provide a required blackout notice and notice of right to divest employer securities (see Standard Document, Blackout Notice)	$139
ERISA § 502(c)(8) (29 U.S.C. § 1132(c)(8))	Failure of multiemployer plan in endangered status to adopt a funding improvement plan (or if in critical status, a rehabilitation plan) Failure also applies to an endangered status plan (that is not a seriously endangered status plan) that fails to meet its benchmark by end of funding improvement period (see Practice Note, Multiemployer Pension Plans)	$1,378
ERISA § 502(c)(9)(A) (29 U.S.C. § 1132(c)(9)(A))	Per day failure by an employer to inform employees of CHIPcoverage opportunities under ERISA Section 701(f)(3)(B)(i)(l) (each employee a separate violation)	$117
ERISA § 502(c)(9)(B) (29 U.S.C. § 1132(c)(9)(B))	Per day failure by a plan to timely provide to any state information required to be disclosed under ERISA Section 701(f)(3(B)(ii) (each participant or beneficiary a separate violation)	$117
ERISA § 502(c)(10) (29 U.S.C. § 1132(c)(10))	Failure by any plan sponsor of a group health plan, or any health insurer offering coverage in connection with the plan, to satisfy ERISA's requirements regarding genetic information (multiple subparts) (see Practice Note, GINA Compliance for Health and Welfare Plans)	$117 $2,919 $17,515 $583,830
ERISA § 502(c)(12) (29 U.S.C. § 1132(c)(12))	Failure of a Cooperative and Small Employer Charity (CSEC) plan sponsor to establish or update a funding restoration plan	$107
ERISA § 502(m) (29 U.S.C. § 1132(m))	Prohibited distribution under ERISA Section 206(e)	$16,915
ERISA § 715 (29 U.S.C. § 1185dand 42 U.S.C. § 300gg-15)	Failure to provide required Affordable Care Act (ACA) summaries of benefits and coverage (SBCs) (Section 2715 of the Public Health Service Act; 42 U.S.C. § 300gg-15) (see Practice Note, Summaries of Benefits and Coverage Under the ACA)	$1,156

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New IRS Fees for Private Letter Rulings, Plan Terminations, EPCRS -VCP submissions

New Fees

Internal Revenue Service ("IRS") issued Revenue Procedure 2019-1, Revenue Procedure 2019-2, Revenue Procedure 2019-3, Revenue Procedure 2019-4, Revenue Procedure 2019-5 and Revenue Procedure 2019-7.

These Revenue Procedures became effective January 2, 2019, and update the annual Revenue Procedures, which set forth the procedures for Determination Letter requests and Private Letter Ruling requests.

• ·        User fee to submit a request for a Private Letter Ruling, under the jurisdiction of the Associate Chief Counsel, will be increased from $28,300 to $30,000,
• ·        Effective July 1, 2019, the user fee to submit an Application for Determination for a Terminating Plan (IRS Form 5310) will be increased from $2,300 to $3,000.
• ·        User fee to submit a request for a Private Letter Ruling, under the jurisdiction of the Employee Plans Office, remains at $10,000;
• ·        User fee to submit a request for a determination letter for an individually designed plan remains at $2,500;
• ·        User fee for regular submissions, under the Voluntary Correction Program ("VCP") under the Employee Plans Compliance Resolution System ("EPCRS"), remains the same ($1,500 for plans with assets of $500,000 or less.
If you need assistance with these procedures, please do not hesitate to contact our offices


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