By: HUB’s EB Compliance Team

The Department of Labor (“DOL”) recently released its annual cost of living adjustments (COLA) for civil monetary penalties applicable to certain benefit plan compliance failures for 2025. The increased amounts will apply to penalties assessed after January 15, 2025. These penalties come from the Employee Retirement Income Security Act of 1974 (“ERISA”), which is the federal law that governs employee benefit plans. The adjusted penalties for 2025 that are most relevant to health and welfare plans

Violation

2025

2024

2023

ERISA Section 502(c)(2) - Failure to file annual returns (Form 5500s)

$2,739 per day

$2,670 per day

$2,586 per day

ERISA Section 502(c)(5) - Failure to file an M-1 Form (Applicable to Multiple Employer Welfare Arrangements- MEWAs)

$1,992 per day

$1,942 per day

$1,881 per day

ERISA Section 502(c)(6) - Failure to provide the DOL with requested documentation

$195 per day not to exceed $1,956 per request

$190 per day not to exceed $1,906 per request

$184 per day not to exceed $1,846 per request

ERISA Section 502(c)(9)(A) - Failure to provide CHIP notice to employees

$145 per employee per day

$141 per employee per day

$137 per employee per day

ERISA Section 502(c)(9)(B) – Failure to disclose group health plan information to a state upon request

$145 per participant and beneficiary per day

$141 per participant and beneficiary per day

$137 per participant and beneficiary per day

ERISA Section 502(c)(10) - Failure to comply with the Genetic Information Nondiscrimination Act (GINA)

$145 per participant and beneficiary per day

$141 per participant and beneficiary per day

$137 per participant and beneficiary per day
  • Minimum penalty for uncorrected de minimis GINA violations

$3,642

$3,550

$3,439
  • Minimum penalty for uncorrected GINA violations that are not de minimis

$21,864

$21,310

$20,641
  • Maximum penalty for unintentional GINA failures

$728,764

$710,310

$688,012

ERISA Section 715 and PHSA 2715(f) - Failure to issue a Summary of Benefits and Coverage (SBC)

$1,443 per day

$1,406 per day

$1,362 per day

The increases for 2025 are in line with historical increases and other recent inflation adjustments. Regular readers may recall that 2023 saw significantly larger increases than in recent history. These penalties are intended to serve as a reminder to plan sponsors of their compliance obligations associated with benefit plan administration.

Employers and plan administrators should carefully review their administrative practices to ensure compliance with the provisions highlighted above. A careful review of administrative practices, especially those associated with the distribution of notices and plan materials to participants, can help an employer or plan administrator avoid costly monetary penalties.

To access a complete list of the 2025 civil monetary penalty adjustments for DOL and its sub-agencies go here.

If you have any questions, please contact your HUB Advisor. View more compliance articles in our Compliance Directory.

NOTICE OF DISCLAIMER
Neither Hub International Limited nor any of its affiliated companies is a law or accounting firm, and therefore they cannot provide legal or tax advice. The information herein is provided for general information only, and is not intended to constitute legal or tax advice as to an organization’s or individual's specific circumstances. It is based on Hub International's understanding of the law as it exists on the date of this publication. Subsequent developments may result in this information becoming outdated or incorrect and Hub International does not have an obligation to update this information. You should consult an attorney, accountant, or other legal or tax professional regarding the application of the general information provided here to your organization’s specific situation in light of your or your organization’s particular needs.