EBSA Recovers Nearly $1.4B for Employee Benefit Plans, Participants

Vast majority of FY 2024 recoveries come from enforcement actions and informal complaint resolutions; total is $51 million less than FY 2023
EBSA FY 2024 Recoveries
Image credit: © Roman Motizov | Dreamstime.com

The U.S. Department of Labor’s Employee Benefits Security Administration recovered $1.384 billion in direct payment to plans, participants, and beneficiaries in FY 2024, the agency announced in a Fact Sheet on Jan. 17—which is $51 million less than the $1.435 billion that was recovered in FY 2023.

FY 2024 Recoveries
Graphic courtesy EBSA

EBSA said in the Fact Sheet that these recoveries, “along with the equally important non-monetary results achieved, demonstrate a strong, fair, and effective program that protects the benefits of America’s workers and retirees.”

The majority of EBSA’s monetary recoveries were the result of enforcement actions ($741.9 million) and informal complaint resolution ($544.1 million). Making up the rest of the total was $53.5 million from the Abandoned Plan Program and $44.3 million from the Voluntary Fiduciary Correction Program.

“But we also made a big difference for current and future participants and beneficiaries by obtaining important non-monetary results,” the Fact Sheet stated. “This includes the elimination of illegal plan provisions, improved fiduciary governance, and increased access to mental health benefits.”

EBSA is responsible for ensuring the integrity of the private employee benefit plan system in the U.S. through enforcement of ERISA. The agency oversees:

• approximately 2.6 million health plans
• 801,000 private pension plans
• 514,000 other welfare benefit plans

These ERISA-covered plans cover 156 million workers, retirees, and dependents who participate in private sector pension and welfare plans that hold an estimated $14 trillion in assets.

Investigations recover $742M

In FY 2024, EBSA closed 729 civil investigations. Of those, 514 cases (71%) produced monetary results for plans or other corrective action, for a total of $741.9 million recovered.

Recoveries for terminated vested participants (individuals who are no longer working for an employer but are still entitled to benefits from their retirement plan) played a large role in these results. EBSA’s enforcement program helped 9,170 terminated vested participants in defined benefit pension plans collect benefits of $432.6 million owed to them.

Non-monetary results

EBSA’s enforcement program also obtains non-monetary corrections and injunctive relief in civil cases that result in increased protections for plan assets or benefits. In FY 2024 EBSA obtained 324 non-monetary civil corrections, including:

• removing 12 fiduciaries
• barring 27 individuals from serving as fiduciaries
• appointing 23 independent fiduciaries
• improving missing participant procedures for 48 plans
• 59 global corrections involving service providers for multiple ERISA-covered health plans

EBSA often pursues voluntary compliance to correct violations and restore losses to employee benefit plans. In cases where those efforts have failed or are inappropriate, EBSA forwards a recommendation to the Solicitor of Labor to initiate litigation.

In FY 2024, EBSA referred 53 cases for litigation. Even after referral to the solicitor, EBSA noted that often claims for monetary relief are resolved without filing suit.

$544 million restored via informal complaints

When workers experience a problem with an employee benefit plan, they can directly contact an EBSA Benefits Advisor for assistance. In FY 2024, EBSA’s Benefits Advisors closed more than 199,000 inquiries and recovered $544.1 million in benefits through informal resolution of individual complaints. Many of the inquiries came via EBSA’s toll-free number (1-866-444-EBSA), or askebsa.dol.gov. In FY 2024, EBSA opened 294 new investigations from Benefits Advisor referrals.

In FY 2024, EBSA’s criminal investigations led to the indictment of 68 people and convictions or guilty pleas of 161 people—including plan officials, corporate officers and service providers—for offenses related to employee benefit plans. 177 criminal investigations were closed during the fiscal year.

Read the complete Fact Sheet here.

SEE ALSO:

• EBSA Recovered $1.4 Billion in 2023 for Employee Benefits Plans, Participants and Beneficiaries

• DOL Updates Voluntary Fiduciary Correction Program

Brian Anderson Editor
Editor-in-Chief at  | banderson@401kspecialist.com |  + posts

Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.

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