Civil Monetary Penalties Announced for 2024

Civil Monetary Penalties Announced for 2024

The Department of Labor (DOL) has announced the Civil Monetary Penalties for 2024. Federal agencies are required to review the penalty amounts annually to adjust for inflation, a requirement established in 2015 as part of the Federal Civil Penalties Inflation Adjustment Act Improvements Act. The penalties are adjusted with the goal of acting as a deterrent for plan sponsors attempting to avoid satisfying various compliance obligations related to their Health & Welfare and Retirement Plans under the Employee Retirement Income Security Act (ERISA).

2024 Adjustments for Health & Welfare Plans

• Failure to provide the Children’s Health Insurance Program (CHIP) Notice; Failure to disclose information regarding group health plan coverage for individuals covered by Medicaid or CHIP; Failure to comply with the Genetic Information Nondiscrimination Act (GINA)
  • 2023
    • $137 per day per violation
  • 2024
    • $141 per day per violation
• Failure to provide plan related documents to the DOL, upon request
  • 2023
    • $184 per day
  • 2024
    • $190 per day (not to exceed $1,906 per request)
• Failure to provide Summary of Benefits and Coverage (SBC)
  • 2023
    • Up to $1,362 per failure
  • 2024
    • Up to $1,406 per failure
• Failure to file Form M-1 to the DOL (applicable only to a Multiple Employer Welfare Arrangement (MEWA))
  • 2023
    • Up to $1,882 per day
  • 2024
    • Up to $1,941 per day
• Failure or refusal to file a plan annual report with the DOL
  • 2023
    • Up to $2,586 per day
  • 2024
    • Up to $2,670 per day

2024 Adjustments for Retirement Plans

• Failure to provide benefit statements and maintain former participant and beneficiary records
  • 2023
    • $36 per required statement
  • 2024
    • $37 per required statement
• Failure to provide a notice of right to divest or plan black-out notice
  • 2023
    • $164 per failure
  • 2024
    • $169 per failure
• Failure to comply with the prohibition on certain types of distributions from defined benefit pension plans
  • 2023
    • Maximum penalty: $19,933
  • 2024
    • Maximum penalty: $20,579
• Failure or refusal to file a plan annual report with the DOL
  • 2023
    • Up to $2,586 per day
  • 2024
    • Up to $2,670 per day

Next Steps

As a plan fiduciary under ERISA, plan sponsors should be aware of the annual requirements applicable to their plans. To avoid penalties, plan sponsors must be cognizant of their obligations and ensure the proper procedures are in place to comply with the various reporting and disclosure requirements they are subject to.