Failure to Furnish SPD

[Guest Donaldson]

Does anyone know if there are penalites and the amount of such penalties for failing to furnish an SPD or an updated SPD to participants? If you know the cite too I'd appreciate it.

Thank you.

[R. Butler]

What ought be done is to make the Fiduciary change his name to Steve Bartman & then make him run through the streets of Chicago while wearing a Marlins jersey. This may accomplish a couple of things. It may satisfy the whining Cubs fans desire for vengence & maybe after a few beatings the anger will subside & the real Steve Bartman can get on with his life.

Ah, but alas my sick sense of justice won't be honored.

Generally no civil penalties. Possible criminal penalties under ERISA §501.

"...Any person who willfully violates any provision of part 1 of this

subtitle, or any regulation or order issued under any such provision,

shall upon conviction be fined not more than $5,000 or imprisoned not

more than one year, or both; except that in the case of such violation

by a person not an individual, the fine imposed upon such person shall

be a fine not exceeding $100,000...."

Possible civil penalties if participant makes a formal request & request not fulfilled within 30 days. See ERISA §502©(1).

"c) Administrator's refusal to supply requested information; penalty for

failure to provide annual report in complete form

(1) Any administrator (A) who fails to meet the requirements of

paragraph (1) or (4) of section 1166 \2\ of this title or section

1021(e)(1) of this title with respect to a participant or beneficiary,

or (B) who fails or refuses to comply with a request for any information

which such administrator is required by this subchapter to furnish to a

participant or beneficiary (unless such failure or refusal results from

matters reasonably beyond the control of the administrator) by mailing

the material requested to the last known address of the requesting

participant or beneficiary within 30 days after such request may in the

court's discretion be personally liable to such participant or

beneficiary in the amount of up to $100 a day from the date of such

failure or refusal, and the court may in its discretion order such other

relief as it deems proper..."

If DOL requests & you fail to provide within 30 days penalty can be $100 per day not to exceed $1,000. (See ERISA §502©(6))

[Guest Donaldson]

You have a fantastic sense of humor!

Thank you for responding to my question. What initially confused me is that I recently saw an article that stated that "failure to provide plan documents and summary plan descriptions to participants carries the possiblity of a $110 per day penalty" (but gave not citation). I assumed that this also covered not furnishing an updated SPD. I guess the author was talking about SPDs that are requested by participants and not provided (within ERISA 502©).

I guess I am pretty surprised that there is no penalty if an employer fails to furnish an SPD to a new employee or an updated SPD to existing employees (particularly with all the changes under GUST and EGTRRA).

Thank you again for your response.