DOL Announces 2023 Adjustments to ERISA Penalties

On January 13, 2023, the Department of Labor (DOL) published a final rule adjusting civil monetary penalties under ERISA. The annual adjustments relate to a wide range of compliance issues and are based on the percentage increase in the consumer price index for all urban consumers (CPI-U) from October of the preceding year. The DOL last adjusted certain penalties under ERISA in January of 2022.

Highlights of the 2023 penalties that may be levied against sponsors of ERISA-covered plans include:

• Failure to file Form 5500 maximum penalty increases from $2,400 to $2,586 per day that the filing is late.
• Failure to furnish information requested by the DOL penalty increases from $171 per day (not to exceed $1,713 per request) to $184 per day (not to exceed $1,846 per request).
• Penalties for failure to comply with GINA and failure to provide CHIP notices increase from $127 to $137 per day.
• Failure to furnish Summary of Benefits Coverage penalty increases from $1,264 to $1,362 maximum per failure.
• Failure to file Form M-1 (for MEWAs) penalty increases from $1,746 to $1,881 per day.

These adjusted amounts are effective for penalties assessed after January 15, 2023, for violations that occurred after November 2, 2015. The DOL will continue to adjust penalties no later than January 15 of each year and will post any changes to penalties on its website.

To avoid imposition of penalties, employers should ensure ERISA compliance for all benefit plans and stay updated on ERISA’s requirements. For more information on the new penalties, including the complete listing of changed penalties, please consult the final rule linked below.

Final Rule »