Failing to meet ERISA requirements—like not providing plan documents or required disclosures—can lead to significant penalties for employers. The Department of Labor (DOL) enforces ERISA and may audit plans at any time.
đź’Ą Common ERISA Penalties:
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Failure to provide a Summary Plan Description (SPD)
Up to $110 per day, per participant, if requested and not provided within 30 days. -
Failure to provide a plan document upon request
Also subject to the $110 per day, per participant penalty. -
Failure to file Form 5500 (if required)
Up to $2,670 per day until the form is filed. The longer it’s late, the worse it gets. -
DOL Audit Risk
Non-compliance can trigger a full audit, which may result in additional fines, enforcement actions, or the need to retroactively correct documentation and procedures.
🧠Key Takeaway:
Even small employers can be penalized if they’re subject to ERISA and don’t have required documentation in place. Using a wrap document and maintaining compliance helps avoid costly surprises.