ERISA Enforcement and Penalties

Employer group health plans should be reminded of the importance of the employer’s role as a fiduciary of the benefit plans offered to employees.

As a fiduciary, the employer is required to act in the best interest of plan participants.

The employer’s fiduciary duties could include, but may not be limited to, the following.

setting and following plan terms such as benefit inclusions and exclusions;

eligibility for coverage;

claims procedures;

adopting formal plan documents;

providing participant disclosures;

reporting certain information to the government (e.g., Form 5500s);

properly handling plan assets; and

carefully selecting and managing any plan service providers.

In January, the DOL released the updated ERISA civil monetary penalty amounts for 2024 for things such as failing to file an annual Form 5500 or failure to annually distribute the summary of benefits and coverage (SBC). The 2024 fact sheet on these updates can be found on the DOL website.

In addition, EBSA recently released a summary of 2023 enforcement activities. The news release can also be found on the DOL website.

^{While every effort has been taken in compiling this information to ensure that its contents are totally accurate, neither the publisher nor the author can accept liability for any inaccuracies or changed circumstances of any information herein or for the consequences of any reliance placed upon it. This publication is distributed on the understanding that the publisher is not engaged in rendering legal, accounting, or other professional advice or services. Readers should always seek professional advice before entering into any commitments.}