401(k) ERISA Statutory Penalties


Geek Out!

 

Plan participant complaints alleging potential failures of fiduciary duty, and random or “for-cause” DOL investigations, can create a huge burden on plan administrators, often resulting in significant financial consequences.

The federal Employee Benefits Security Administration (EBSA) often encourages voluntary compliance as a means to correct violations and to restore any losses to employee benefit plans.

However, in cases where voluntary compliance efforts have failed, or that involve issues for which voluntary compliance is not feasible or appropriate, EBSA may forward a recommendation to the U.S. Solicitor of Labor’s Office to initiate litigation against the plan.

For 2021, ERISA statutory penalties include (but are not limited to):

ERISA criminal liability includes: