Labor Department Adjusts Civil Monetary Penalties for Inflation

Archived News Release — Caution: Information may be out of date.

Washington, DC - The U.S. Department of Labor’s Pension and Welfare Benefits Administration published in the Federal Register today a final rule that adjusts for inflation civil penalties that may be assessed against plan administrators and other persons who violate certain provisions of the Employee Retirement Income Security Act (ERISA).

The adjustments were made in accordance with the Federal Civil Penalties Inflation Adjustment Act of 1990 that requires federal agencies to adjust for inflation certain civil monetary penalties at least once every four years.

In this adjustment cycle, there is a small increase in two civil penalty amounts under Title I of ERISA:

• The civil monetary penalty set by ERISA section 502(c)(5) for a failure or refusal by certain administrators to file Form M-1 information with the department as required by ERISA section 101(g) will be adjusted from a maximum of $1,000 per day to a maximum of $1,100 per day, and
• The civil monetary penalty set by ERISA section 502(c)(6) for a failure or refusal by a plan administrator to furnish on request certain plan documents (e.g., summary plan descriptions) to the Secretary will be adjusted from up to $100 per day to $110 per day with the penalty cap being adjusted from $1,000 per request to $1,100 per request.

No adjustments are required for any other civil penalties under Title I of ERISA. The increases in penalty amounts will apply to violations occurring after March 24, 2003, the effective date of the final rule.

U.S. Department of Labor news releases are accessible on the Internet. The information in this news release will be made available in alternate format upon request (large print, Braille, audio tape or disc) from the Central Office for Assistive Services and Technology. Please specify which news release when placing your request. Call 202.693.7773 or TTY 202.693.7755.

Printer Friendly Version

Archived News Release — Caution: Information may be out of date.