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Posted

ERISA Section 502(c)(1)(B) allows a court to impose a civil penalty upon a plan administrator if it fails to furnish documents to a participant or beneficiary with 30 days of receiving a written request for such documents absent reasons beyond its control. The dollar amount was bumped up to $110 by 1990 legislation. 2015 legislation imposed a requirement for indexing the dollar amounts for nearly all federal statutory penalty amounts. However, I have noticed that on the four occasions when the DOL has published penalty adjustments, Section 502(c)(1)(B) was omitted from its list. Does anyone know why this is happening?

  • 2 weeks later...
Posted

I believe the answer is that the indexing statute applies only to penalties enforced or assessed by federal agencies. The 502(c)(1) penalty isn't enforced or assessed by the DOL. It's enforced by participants and assessed by the courts. So no adjustment.

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