Who is eligible to recover the civil penalties for failure to produce documents timely?

Who is eligible to recover the civil penalties for failure to produce documents timely?

• A. Plan sponsors only
• B. Plaintiffs and beneficiaries only
• C. Employers only
• D. Plan administrator only

Answer: (B)

When a plan administrator does not provide required plan documents in a timely manner, ERISA allows a civil penalty to be imposed to enforce compliance. The penalty is a remedy aimed at the harmed individual—the person who requested the information. Therefore, the party who may recover the civil penalty is the plaintiff or beneficiary who sought the documents. Plan sponsors, employers, or the plan administrator are not the ones who recover the penalty; the recovery goes to the person who faced the noncompliance.

When a plan administrator does not provide required plan documents in a timely manner, ERISA allows a civil penalty to be imposed to enforce compliance. The penalty is a remedy aimed at the harmed individual—the person who requested the information. Therefore, the party who may recover the civil penalty is the plaintiff or beneficiary who sought the documents. Plan sponsors, employers, or the plan administrator are not the ones who recover the penalty; the recovery goes to the person who faced the noncompliance.