Department of Labor   Announces Increases to ERISA Noncompliance Penalties

On   June 30, 2016, the Department of Labor (the "Department") announced   that various civil monetary penalties, including those pertaining to ERISA   reporting and disclosure violations, will be increased to account for   inflation. The increases are prompted by the Federal Civil Monetary Penalties   Inflation Adjustment Act of 1990 (the "Inflation Adjustment Act").   This law requires federal agencies, including the Department, to adjust their   civil monetary penalties for inflation. Additionally, 2015 amendments to the   Inflation Adjustment Act require federal agencies to adjust their civil   monetary penalties for inflation through October of 2015. After this initial   "catch-up" adjustment, the agencies must adjust their civil   monetary penalties annually. Beginning in 2017, the Department will adjust   the new penalty amounts annually for inflation no later than January 15 of   each year. For example, by January 15, 2017, the Department will adjust   penalty amounts to reflect any increase in inflation from October 2015 to   October 2016. The table below shows, for key ERISA violations, the current   penalty amounts, and the 2016 inflation-adjusted penalty. The catch-up   adjustments apply to penalties assessed after August 1, 2016.