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ERISA sets forth standards of fiduciary conduct which apply to persons responsible for the administration and management of a MEWA.that is subject to ERISA
Form M-1 applies specifically to MEWAs and must be filed annually (and upon certain events) with the DOL. In addition to fiduciary and financial information, the M-1 requires information about a MEWA’s compliance with the health coverage mandates in Part 7 of ERISA.Including specific benefit requirements under the Health Insurance Portability and Accountability Act (HIPAA), the Newborns’ and Mothers’ Health Protection Act (Newborn’s Act), the Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA), the Women’s Health and Cancer Rights Act (WHCRA), the Genetic Information Nondiscrimination Act (GINA), Michelle’s Law, and the Patient Protection and Affordable Care Act (Affordable Care Act)
See the tables below for penalties related to specific Fiduciary and Health Plan compliance failures.
2020 |
|
For willfull violations of ERISA’s reporting and disclosure requirements |
Up to $100,000 in fines per individual, and possible imprisonment of up to 10 years |
For knowingly making false statements or concealing/failing to disclose any fact needed to prepare ERISA reports |
Fines determined under federal sentencing guidelines and possible imprisonment of up to 5 years |
For coercive interference with a participant’s rights under an employee benefit plan |
Up to $100,000 in fines, and possible inprisonment |
Theft or embezzlement from an employee benefit plan |
Fine determined under federal sentencing guidelines and possible imprisonment of up to 5 years |
Breach of Fiduciary Duties under ERISA |
Monetary penalties up to 20% of the recovery amount;
Personally liable to restore any losses to the Plan; Removal as a fiduciary; or Criminal prosecution including fines and imprisonment |
2020 |
2019 |
2018 |
|
CHIPRAFailure to inform an employee of CHIP coverage opportunities |
Up to $119 per day per employee | Up to $117 per day per employee | Up to $114 per day per employee |
COBRAFailure to provide compliant COBRA notices |
$100 per day per violation; in addition, ERISA provide notice penalties of up to $110 per day from the date of compliance failure | $100 per day per violation; in addition, ERISA provide notice penalties of up to $110 per day from the date of compliance failure | $100 per day per violation; in addition, ERISA provide notice penalties of up to $110 per day from the date of compliance failure |
DOLFailure to furnish to the DOL any requested information relating to the employee benefit plan |
Up to $159 per day not to exceed $1,594 per request | Up to $156 per day not to exceed $1,566 per request | Up to $152 per day not to exceed $1,527 per request |
FMLAWillful failure to post FMLA general notice |
Up to $176 for each separate violation | Up to $173 for each separate violation | Up to $169 for each separate violation |
Form 1095-BFailure to file a correct information return and failure to provide a correct payee statement |
$270 per return/statement with a max penalty of $3,275,500 per year | $270 per return/statement with a max penalty of $3,218,500 per year | $260 per return/statement with a max penalty of $3,193,000 per year |
Form 1095-CFailure to file a correct information return and failure to provide a correct payee statement |
$270 per return/statement with a max penalty of $3,339,000 per year | $270 per return/statement with a max penalty of $3,275,500 per year | $270 per return/statement with a max penalty of $3,218,500 per year |
Form 5500DOL penalties for failure or refusal to file annual report (i.e., Form 5500) |
Up to $2,233 per day that the filing is late | Up to $2,194 per day that the filing is late | Up to $2,140 per day that the filing is late |
GINAFailure to any plan sponsor of a group health plan that fails to meet requirements with respect to genetic information |
$119 per day per employee | $117 per day per employee | $114 per day per employee |
Form M-1Failure of MEWA to file Form M-1 |
Up to $1,625 per day for each failure | Up to $1,597 per day for each failure | Up to $1,558 per day for each failure |
SBCFailure to furnish required documents to a requesting participant, such as an SBC |
Up to $1,176 per failure | Up to $1,156 per failure | Up to $1,128 per failure |
SPD and SARFailure to provide an SPD, SAR, or plan document within 30 days of receiving a request from a plan participant or beneficiary |
$110 per day per employee | $110 per day per employee | $100 per day per employee |
Material contained in ComplianceDashboard is a compilation of generally published information by the Department of Labor and other public agencies regulating employee benefit plans and employee benefit issues. It is not legal advice, and should not be construed as legal advice. If legal advice or other professional assistance is or may be required with regard to any issues referenced in this website, the services of a competent legal or tax professional should be immediately sought. The inclusion of links within the ComplianceDashboard website is for informational purposes only. ComplianceDashboard does not warrant the accuracy of information outside this website that is found as a result of following links contained herein, nor does the inclusion of those links herein constitute endorsement of the content of any other website. If you have questions regarding this disclaimer, please contact us at 877-328-7880.