Prospecting with the DOL Penalty Data

DOL penalty

The EBSA Plan Administration of the DOL, the enforcers of the 5500 filings rulings, take their job seriously. In 2016, the it ran 2,002 civil investigations with 67% of the cases resulting in a DOL penalty.1

Why would you want to know this? Because if you learn from the companies that have had to pay a DOL penalty then perhaps you’ll position yourself to avoid the same mistakes and perhaps help prevent other challenges for prospects.

How would a producer find a prospect who paid a DOL penalty for non-filing or deficient filing? There are two ways:

1. The EBSA plan administration has a website geared to report relevant statistics.

They provide a searchable database to look up each company who had to pay a fine. A producer can search via Plan Sponsor name or look for only those in a particular state and use the data for a unique approach to their prospecting.

What can be found from the data?

  • Closed cases that resulted in penalty assessments by the EBSA plan administration since 2000.
  • Outlines deficient filers, late filers and non-filers and the range of the penalty amount.
  • Provides Plan Administrator’s EIN and contact information

What are the statistics for the 3rd Quarter this far?

There were 75 EBSA Administrators/Plan Sponsors fined. Of those 75, 36, or 48%, had deficient filings whereas 39, or 52%, were fined for not filing.

DOL penaltyDOL penaltySource:

2. downloads the 5500 filing data from the DOL website and loads it into their system.

After logging into the site, a producer can run a search for companies who used the DFVC program (the DOL’s Delinquent Filer Voluntary Compliance Program). If an employer has enrolled in the DFVC, they have absorbed substantial expenses with preparation for missed filing years and fines. These employers would likely welcome a resource who can partner with them to make sure they file on time and accurately and control the employee benefit costs.

How many filed under the DFVC Program?

Per the DOL in 2016, there were 22,070 DFVC filings received.

If you need help filing your Form 5500 or would just like to know more about the information in this post contact us and we’d be happy to help.

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2017-12-06T09:07:18+00:00 By |Categories: Uncategorized|