The Employee Benefits Security Administration (EBSA) is charged with enforcing ERISA laws and regulations. EBSA conducts investigations into complaints of ERISA violations and prosecutes both civil and criminal cases based on their findings.
Each year, the Department of Labor (DOL) releases statistics regarding their actions as well as a strategic plan for enforcement.
In 2018, over $1.6 billion was recovered, up half a billion dollars from 2017.
This came as a result of 1,329 civil investigations closed in 2018, 64% of which included either a monetary recovery or required other corrective actions.
Of these investigations, 111 went to litigation. Most plan fiduciaries prefer to enter into settlements with EBSA. There were also 268 criminal investigations against 142 individuals. 87 of those involved either were convicted or plead guilty.
| Enforcement Actions | Voluntary Fiduciary Correction Program | Abandoned Plan Program | Informal Complaint Resolution | |
| 2018 | $1.1 billion | $10.8 million | $33.4 million | $443.2 million |
| 2017 | $682.3 million | $10 million | $27.9 million | $418.7 million |
Enforcement Actions
The largest share of the monetary recovery, enforcement actions occur when an investigation has found certain problematic behavior with a benefits plan. This behavior ranges from failure on the part of the fiduciaries to operate the plan in a prudent fashion to failure to properly comply with the Affordable Care Act. Over $800 million in this category was the result of recoveries on behalf of improper termination of vested plan participants. Strategies for 2019 have EBSA continuing to focus the DOL’s limited resources on major cases where the largest results can be obtained.
Voluntary Fiduciary Correction Program
When violations are identified, this program is designed to encourage plans to voluntary take corrective action to bring their plans back into compliance. The program further takes steps to ensure plan fiduciaries understand the law and will continue to act in accordance with current regulations.
Abandoned Plan Program
When a benefits plan, such as a pension account, has been abandoned by an employer, this program facilitates the distribution of benefits to plan members. This came from 910 applications and 658 plans making distributions directly to their participants.
Informal Complaint Resolution
When EBSA receives a valid complaint regarding a benefits plan, they first try to informally resolve the complaint. If it cannot be resolved informally, it is then handed off to enforcement staff for further investigation.
Anne Tyler Hall is the owner and principal attorney of Hall Benefits Law. HBL offers employers comprehensive legal guidance on benefits in mergers and acquisitions, Employee Stock Ownership Plans (ESOPs), executive compensation, health and welfare benefits, healthcare reform, and retirement plans. We counsel a wide spectrum of clients including small, mid-sized, and large companies, 401(k) investment advisors, health insurance brokers, accountants, attorneys, and HR consultants, just to name a few. HBL is passionate about advising clients, and we are dedicated to our mission: to provide comprehensive, personalized, and practical ERISA and benefits legal solutions that exceed client expectations.