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Through its enforcement of the Employee Retirement
Income Security Act (ERISA), the Employee Benefits Security Administration
(EBSA) is responsible for ensuring the integrity of the private employee
benefit plan system in the United States. EBSA’s oversight authority
extends to nearly 700,000 retirement plans, approximately 2.5 million
health plans, and similar numbers of other welfare benefit plans, such as
those providing life or disability insurance. These plans cover about 150
million workers and their dependents and include assets of approximately
$5.6 trillion. Total monetary results for FY 2007 were approximately $1.5
billion.
|
Total Monetary Results |
FY2001 |
FY2002 |
FY2003 |
FY2004 |
FY2005 |
FY2006 |
FY2007 |
% Change
FY01-07 |
Total Results |
$721 M |
$883 M |
$1.4 B |
$3.1 B |
$1.7 B |
$1.4 B |
$1.5 B |
+108% |
Prohibited Transactions Corrected and Plan Assets
Protected |
$444.6 M |
$566.1 M |
$1.12 B |
$2.53 B |
$984.6 M |
$569.1 M |
$719.7 M |
+62% |
Plan Assets Restored and Participant Benefits
Recovered |
$272.2 M |
$315 M |
$275.3 M |
$323.9 M |
$709.3 M |
$829.4 M |
$642.1 M |
+136% |
Voluntary Fiduciary Correction Program |
$4.2 M |
$1.9 M |
$8.7 M |
$264.6 M |
$7.4 M |
$24.2 M |
$130 M |
+2,995% |
|
In FY 2007, EBSA closed 3,236 civil investigations, with 2,402 (74.23%)
resulting in monetary results for plans or other corrective action.
Because of improved targeting, the proportion of investigations closed “with
results” has increased by 30% since FY 2001.
EBSA often pursues voluntary compliance as a means to correct
violations and restore losses to employee benefit plans. However, in cases
where voluntary compliance efforts have failed, or which involve issues
for which voluntary compliance is not appropriate, EBSA forwards a
recommendation to the Solicitor of Labor that litigation be initiated. In
FY 2007, 164 cases were referred for litigation. Together, EBSA and the
Solicitor of Labor determine which cases are appropriate for litigation,
considering the ability to obtain meaningful relief through litigation,
cost of litigation, viability of other enforcement options, and agency
enforcement priorities. EBSA cases referred to the Solicitor’s office
for litigation are often resolved, with monetary payments, short of
litigation. Nationwide in FY 2007, litigation was filed in 114 civil
cases.
|
Civil Investigations |
FY2001 |
FY2002 |
FY2003 |
FY2004 |
FY2005 |
FY2006 |
FY2007 |
% Change
FY01-07 |
Civil Investigations Closed |
4,762 |
4,925 |
4,253 |
4,399 |
3,782 |
3,411 |
3,236 |
-32% |
Civil Investigations Closed with Results |
2,724 |
2,877 |
2,939 |
3,056 |
2,862 |
2,534 |
2,402 |
-12% |
% Civil Investigations Closed with Results |
57.20% |
58.42% |
69.10% |
69.47% |
75.67% |
74.29% |
74.23% |
+30% |
Civil Cases Referred for Litigation |
199 |
241 |
291 |
310 |
258 |
251 |
164 |
-18% |
Civil Cases With Litigation Filed |
73 |
104 |
108 |
125 |
178 |
170 |
114 |
+56% |
|
EBSA has responsibility to investigate potential violations of the
criminal provisions of ERISA and those provisions of Title 18 of the United
States Code that relate to employee benefit plans. EBSA conducts most of its
criminal investigations in consultation with the United States Attorney for
the jurisdiction. Other investigations are conducted in consultation with
the appropriate state or local law enforcement authority. Criminal
Investigations are often conducted jointly with other federal and state law
enforcement agencies.
In FY 2007, EBSA closed 188 criminal investigations. EBSA’s criminal
investigations, as well as its participation in criminal investigations with
other law enforcement agencies, led to the indictment of 115 individuals –
including plan officials, corporate officers, and service providers – for
offenses related to employee benefit plans. Since FY 2001, the agency has
also increased the number of criminal investigations closed with either a
guilty plea or with a criminal conviction by 43%.
|
Criminal Investigations |
FY2001 |
FY2002 |
FY2003 |
FY2004 |
FY2005 |
FY2006 |
FY2007 |
% Change
FY01-07 |
Criminal Investigations Closed |
143 |
154 |
175 |
152 |
196 |
221 |
188 |
+31% |
Criminal Investigations Closed with Guilty Pleas
or Convictions |
49 |
49 |
57 |
62 |
70 |
75 |
70 |
+43% |
Number of Individuals Indicted |
87 |
134 |
137 |
121 |
106 |
106 |
115 |
+32% |
|
EBSA’s Voluntary Fiduciary Correction Program (VFCP) and Delinquent Filer
Voluntary Compliance Program (DFVCP) encourage the correction of violations of
ERISA by providing significant incentives for fiduciaries and others to
self-correct.
The VFCP allows plan officials who have identified certain violations of
ERISA to take corrective action to remedy the breaches and voluntarily report
the violations to EBSA, without becoming the subject of an enforcement action.
In FY 2007, EBSA received 1,451 applications for the VFCP. This enormous
increase reflects the extent to which the regulated community has accepted the
program.
The DFVCP encourages plan administrators to bring their plans into compliance
with ERISA’s filing requirements. Since a major program revision in 2002,
program usage has increased dramatically, with more than 1,500 previously
un-filed annual reports received each month in FY 2007.
|
Correction Programs |
FY2001 |
FY2002 |
FY2003 |
FY2004 |
FY2005 |
FY2006 |
FY2007 |
% Change
FY01-07 |
VFCP Applications Received |
62 |
55 |
240 |
474 |
985 |
1,468 |
1,451 |
+2,240% |
DFVCP Filings Received |
2,609 |
3,023 |
11,573 |
13,808 |
13,322 |
15,746 |
18,729 |
+618% |
|
When workers experience a problem with an employee benefit plan, EBSA has
proven effective in resolving their requests for assistance. In FY 2007, EBSA’s
Benefits Advisors handled more than 161,000 inquiries and recovered $96 million
in benefits on behalf of workers and their families through informal resolution
of individual complaints. Many of these inquiries were received via EBSA’s
toll-free number: 1.866.444.EBSA (3272) and Web site: www.askebsa.dol.gov.
These inquiries are also a major source of enforcement leads. When EBSA
becomes aware of repeated complaints with respect to a particular plan,
employer, or service provider, or when there is information indicating a
suspected fiduciary breach, the matter is referred for investigation. In FY
2007, 687 new investigations were opened as a result of referrals from Benefits
Advisors. This number has decreased from previous years as Benefits Advisors
resolve more inquiries informally prior to a referral to EBSA’s enforcement
division.
|
Inquiry Statistics |
FY2001 |
FY2002 |
FY2003 |
FY2004 |
FY2005 |
FY2006 |
FY2007 |
% Change
FY01-07 |
Total Inquiries |
169,724 |
184,851 |
173,598 |
163,221 |
159,828 |
164,863 |
161,062 |
-5% |
Monetary Benefit Recoveries from Informal
Complaint Resolution |
$64.3 M |
$48.7 M |
$82.9 M |
$76.4 M |
$88.4 M |
$87.1 M |
$96 M |
+49% |
Investigations Opened from Inquiry Referrals |
1,251 |
1,347 |
1,362 |
1,069 |
1,067 |
718 |
687 |
-45% |
|
EBSA also conducts education and outreach events for workers,
employers, plan officials and members of Congress. These nationwide activities
include assisting dislocated workers who are facing job loss, educating
employers of their obligations under ERISA, using a train-the-trainer format to
inform Congressional staff of EBSA programs for their use in constituent
services, and providing employees with information concerning their rights under
the law. In FY 2007, EBSA conducted 1,793 outreach events.
|
Outreach, Education and
Assistance Statistics |
FY2001 |
FY2002 |
FY2003 |
FY2004 |
FY2005 |
FY2006 |
FY2007 |
% Change
FY01-07 |
Dislocated Worker Rapid Response Sessions |
245 |
858 |
695 |
674 |
651 |
920 |
671 |
+174% |
Congressional Briefings |
95 |
78 |
215 |
290 |
197 |
211 |
225 |
+137% |
Compliance Assistance Activities |
219 |
257 |
458 |
576 |
598 |
522 |
467 |
+113% |
Other Participant Assistance and Public Awareness
Activities |
500 |
417 |
711 |
572 |
501 |
481 |
430 |
-14% |
Total Outreach Events |
1,059 |
1,610 |
2,079 |
2,112 |
1,947 |
2,134 |
1,793 |
+69% |
|
EBSA also reaches workers, retirees, employers, plan service
providers, and the public through its printed materials and Web site –
www.dol.gov/ebsa. English and Spanish language publications featuring
participant and compliance assistance information are available through EBSA’s
toll-free number. Publications are also available electronically on our Web site,
which includes consumer information, relevant laws and regulations, technical
guidance, seminar schedules, and other valuable resources. EBSA’s Web site –
which received a record 2.1 million visitors in FY 2007 – allows the agency to
maximize its resources to reach a wide audience.
|
Publication and Web Site
Statistics |
FY2001 |
FY2002 |
FY2003 |
FY2004 |
FY2005 |
FY2006 |
FY2007 |
% Change
FY01-07 |
Publications Distributed |
932,034 |
1,407,552 |
919,388 |
809,687 |
974,108 |
818,000 |
888,771 |
-5% |
Web Site Visitors |
777,907 |
1,295,891 |
1,727,505 |
1,586,823 |
1,398,203 |
1,793,112 |
2,118,004 |
+172% |
|
Overall, EBSA’s results demonstrate a strong, fair, and
effective program that protects the benefits of America’s workers and
retirees.
This fact sheet has been developed by the U.S. Department of Labor, Employee
Benefits Security Administration, Washington, DC 20210. It will be made
available in alternate formats upon request: Voice phone: 202.693.8664;
TTY: 202.501.3911. In addition, the information in
this fact sheet constitutes a small entity compliance guide for purposes of
the Small Business Regulatory Enforcement Fairness Act of 1996.
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