Most ERISA covered plans realize that they need to file an annual Form 5500. A lesser known requirement is that multiple employer welfare arrangements (MEWAs) must also file an initial and annual Form M-1 with the DOL. The penalty for failing to file a Form M-1 is almost as severe as the penalty for failing to file a Form 5500, at a rate of $1,992 per day in penalty fees. Prior to the recent update to the DOL’s Delinquent Filer Voluntary Compliance Program (DFVCP), plan sponsors who missed an M-1 filing did not have an opportunity for penalty relief.
DFVCP continues to be a great tool for sponsors and administrators of ERISA-covered employee benefit plans. Although we are still waiting for the 2026 annual adjustments to penalties from the DOL, the Department did expand DFVCP at the end of 2025. MEWAs and Entities Claiming Exception required to file Form M-1 are now eligible to correct late filings under the program.
Employers can eliminate potential liability by completing a DFVCP application, which will reduce the total penalty to $750. This expansion is particularly welcome relief for employers that unintentionally formed a MEWA through participation in a health and welfare plan with an unrelated employer. The expanded DFVCP now provides a clear path, with significantly reduced penalties, to correct delinquent Form M-1 filings.
Although the newly expanded program provides some relief for plan sponsors, it does not entirely fix the problem if you determine that your group health plan is a MEWA. For self-insured plans, many states also have filing and approval requirements as well as requirements to keep a reserve with the state’s Department of Insurance. Therefore, if the entities in your plan are not closely related enough to be part of a controlled group, you should seek assistance from experienced employee benefits counsel to determine how best to assess your risks and remedy the situation.
If you have any questions regarding MEWAs or the DOL’s correction program, please contact any member of Bricker Graydon Wyatt’s employee benefits team.
