Penalties for Improper Answers on Form 5500 (Posted April 15, 2001) Technical Tip 10: The following question and answer were from the DOL Q&A Session at the 2000 ASPPA Annual Conference: If a TPA is preparing a Form 5500, or the attached schedules, for review and signature by an employer, and the TPA answers a question in a way that the TPA knows is incorrect, are there any penalties? DOL Response: Section 501 of ERISA makes it a criminal offense for any person to willfully violate any of the reporting and disclosure provisions of ERISA. In addition, Section 1027 of Title 18 of the United States Code, the federal criminal code, makes it a criminal violation to provide false statements or knowingly conceal facts in relation to documents required by ERISA. The application of these federal criminal provisions is not limited to persons who are fiduciaries but applies to all persons. In addition there are general federal criminal provisions concerning aiding and abetting and providing false answers that may also apply. As above, if the TPA is a fiduciary, there would be a breach of fiduciary duty in this circumstance as well. As also mentioned above, there could be other consequences, for example, under state law, as between the plan and the TPA, that are outside the jurisdiction of the Department. Caveat: The answer was drafted by Fred Reish and Brad Huss, the program moderators, based on their understandings of discussions with four senior officials of the Pension and Welfare Benefits Administration (PWBA) of the U.S. DOL. As a result, it does not represent a formal or binding position statement by the PWBA. View all Tips © 2012 Reish Luftman Reicher & Cohen, a Professional Corporation Important notice: Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner's situation. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of your situation.