Contributing Author: Kristine Custodio Suero, Advanced Certified Paralegal
As part of the ongoing effort to maintain the effectiveness of civil monetary penalties and enhance their deterrent impact, the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 mandates annual adjustments for inflation. The Department of Labor (DOL) has published the updated penalty amounts for 2025, effective for penalties assessed after January 15, 2025, for violations occurring after November 2, 2015. Below is a summary of key adjustments relevant to ERISA violations:
Key ERISA Civil Penalty Adjustments for 2025
· Failure to Furnish Reports to Certain Former Participants and Beneficiaries (ERISA § 209(b)):
o Penalty: Increased to up to $38 per employee.
· Failure or Refusal to File Annual Report (Form 5500) (ERISA § 502(c)(2)):
o Penalty: Increased to up to $2,739 per day.
· Failure to Notify Participants of Certain Benefit Restrictions (ERISA § 502(c)(4)):
o Penalty: Increased to up to $2,167 per day.
· Failure of a Multiple Employer Welfare Arrangement to File Required Report (ERISA § 502(c)(5)):
o Penalty: Increased to up to $1,992 per day.
· Failure to Furnish Information Requested by Secretary of Labor (ERISA § 502(c)(6)):
o Penalty: Increased to up to $195 per day, not to exceed $1,956 per request.
· Failure to Furnish a Blackout Notice or Notice of Right to Divest Employer Securities (ERISA § 502(c)(7)):
o Penalty: Increased to up to $173 per day.
· Failure by a Plan Sponsor of a Multiemployer Plan in Endangered or Critical Status to Adopt a Funding Improvement or Rehabilitation Plan (ERISA § 502(c)(8)):
o Penalty: Increased to up to $1,721 per day.
· Failure by an Employer to Inform Employees of CHIP Coverage Opportunities (ERISA § 502(c)(9)(A)):
o Penalty: Increased to up to $145 per day per employee.
· Failure by a Plan Administrator to Timely Provide Information to States Regarding Coverage Coordination (ERISA § 502(c)(9)(B)):
o Penalty: Increased to up to $145 per day per participant or beneficiary.
· Failure by Group Health Plans or Health Insurance Issuers to Meet Genetic Information Nondiscrimination Requirements (ERISA § 502(c)(10)):
o Penalty: Increased to up to $145 per day during non-compliance period.
Importance of Compliance
It is imperative for plan administrators and sponsors to stay informed about these adjustments to avoid substantial penalties. Regular compliance reviews and timely reporting can mitigate the risk of incurring these increased fines. Consulting with an ERISA attorney can provide guidance tailored to your plan's specific circumstances.
For detailed information and further assistance, please refer to the DOL's official resources or contact our office for personalized advice.
If you have questions about plan compliance issues, IRS or DOL auditsplan compliance issues, IRS or DOL auditsIRS or DOL audits, contact the attorneys at Schechter Benefits Law Group LLP for more information. Our attorneys have an extensive history of counseling plans through an IRS or DOL audit.
Note: The penalty amounts and references have been updated to reflect the 2025 adjustments as per the Department of Labor's official publications.
|
ERISA Penalty Statute |
Description of ERISA Violations Subject to Penalty |
2024 Penalty Amount |
2025 Penalty Amount |
|
ERISA § 209(b) |
Failure to furnish reports (e.g., pension benefit statements) to certain former participants and beneficiaries or maintain records. |
Up to $37 per employee |
Up to $38 per employee |
|
ERISA § 502(c)(2) |
• Failure or refusal to file annual report (Form 5500) required by ERISA § 104; and • Failure of a multiemployer plan to certify endangered or critical status under ERISA § 305(b)(3)(C) treated as failure to file annual report. |
Up to $2,670 per day |
Up to $2,739 per day |
|
ERISA § 502(c)(4) |
• Failure to notify participants under ERISA § 101(j) of certain benefit restrictions and/or limitations arising under Internal Revenue Code § 436; • Failure to furnish certain multiemployer plan financial and actuarial reports upon request under ERISA § 101(k); • Failure to furnish estimate of withdrawal liability upon request under ERISA § 101(1); and • Failure to furnish automatic contribution arrangement notice under ERISA § 514(e)(3). |
Up to $2,112 per day |
Up to $2,167 per day |
|
ERISA § 502(c)(5) |
Failure of a multiple employer welfare arrangement to file report required by regulations issued under ERISA § 101(g). |
Up to $1,942 per day |
Up to $1,992 per day |
|
ERISA § 502(c)(6) |
Failure to furnish information requested by Secretary of Labor under ERISA § 104(a)(6). |
Up to $190 per day not to exceed $1,906 per request |
Up to $195 per day not to exceed $1,956 per request |
|
ERISA § 502(c)(7) |
Failure to furnish a blackout notice under § 101(i) of ERISA or notice of the right to divest employer securities under § 101(m) of ERISA. |
Up to $169 per day |
Up to $173 per day |
|
ERISA § 502(c)(8) |
Failure by a plan sponsor of a multiemployer plan in endangered status to adopt a funding improvement plan or a multiemployer plan in critical status to adopt a rehabilitation plan. Penalty also applies to a plan sponsor of an endangered status plan (other than a seriously endangered plan) that fails to meet its benchmark by the end of the funding improvement period. |
Up to $1,677 per day |
Up to $1,721 per day |
|
ERISA § 502(c)(9)(A) |
Failure by an employer to inform employees of CHIP coverage opportunities under ERISA § 701(f)(3)(B)(i)(I)- each employee a separate violation. |
Up to $141 per day |
Up to $145 per day |
|
ERISA § 502(c)(9)(B) |
Failure by a plan administrator to timely provide to any State the information required to be disclosed under ERISA § 701(f)(3)(B)(ii), regarding coverage coordination - each participant/beneficiary a separate violation. |
Up to $141 per day |
Up to $145 per day |
|
ERISA § 502(c)(10) |
Failure by any plan sponsor of group health plan, or any health insurance issuer offering health insurance coverage in connection with the plan, to meet the requirements of Sections 702(a)(1)(F), (b)(3), (c) or (d); or Section 701; or Section 702(b)(1) with respect to genetic information—daily per participant and beneficiary during non-compliance period. |
Up to $141 per day during non- compliance period |
Up to $145 per day during non- compliance period |
|
ERISA § 502(c)(10) |
Minimum penalty for de minimis failures to meet genetic information requirements not corrected prior to notice from Secretary of Labor. |
$3,550 minimum |
$3,642 minimum |
|
ERISA § 502(c)(10) |
Minimum penalty for failures to meet genetic information requirements which are not corrected prior to notice from Secretary of Labor and are not de minimis. |
$21,310 minimum |
$21,864 minimum |
|
ERISA § 502(c)(10) |
Cap on unintentional failures to meet genetic information requirements. |
$710,310 maximum |
$728,764 maximum |
|
ERISA § 502(c)(12) |
Per day for each failure of a CSEC plan in restoration status to adopt a restoration plan. |
Up to $130 per day |
Up to $133 per day |
|
ERISA § 502(m) |
Failure of fiduciary to make a proper distribution from a defined benefit plan under § 206(e) of ERISA |
Up to $20,579 per distribution |
Up to $21,114 per distribution |
|
ERISA § 715 |
Failure to provide Summary of Benefits Coverage under Public Health Services Act § 2715(f), as incorporated into ERISA § 715 and 29 CFR 2590.715-2715(e). |
Up to $1,406 per failure |
Up to $1,443 per failure |
