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 a similar number 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
$6 trillion (as of June 30, 2008). Monetary results for FY 2008 were $1.2
billion.
Total
Monetary Results
Total Results
Prohibited Transactions Corrected and Plan
Assets Protected
Plan Assets Restored and Participant Benefits
Recovered
Voluntary Fiduciary
Correction Program
$1.2 billion
$730.5 million
$481.6 million
$8.7 million
Civil Investigation Statistics Demonstrate Success
In Targeting
In FY 2008, EBSA closed 3,570 civil investigations,
with 2,696 (75.52%) resulting in monetary results for plans or other
corrective action.
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 2008, 205 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 2008, litigation was filed in 91 civil cases.
Civil
Investigations
Civil Investigations Closed
Civil Investigations Closed With Results
% Civil Investigations Closed With Results
Civil Investigations Referred For Litigation
Civil Cases With Litigation Filed
3,570
2,696
75.52%
205
91
EBSA Investigations Led To The Indictment
Of 101 Persons For Crimes Related To Employee Benefit Plans in FY 2008
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 under the direction of 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 2008, EBSA closed 212 criminal investigations. EBSA’s
criminal investigations, as well as its participation in criminal
investigations with other law enforcement agencies, led to the indictment of
101 individuals – including plan officials, corporate officers, and
service providers – for offenses related to employee benefit plans.
Criminal
Investigations
Criminal Investigations Closed
Criminal Investigations Closed With Guilty
Pleas Or Convictions
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 2008, EBSA received 1,658 applications for the VFCP.
The DFVCP encourages plan administrators to bring their plans
into compliance with ERISA’s filing requirements. More than 2,200
annual reports were received each month in FY 2008. An online filing and
payment option added during FY 2008 has made the program even easier to use.
Correction
Programs
VFCP Applications Received
DFVCP Filings Received
1,658
26,603
Record $139.2 Million Restored to Workers Through Informal Complaint Resolution
When workers experience a problem with an employee benefit
plan, EBSA has proven effective in resolving their requests for assistance. In
FY 2008, EBSA’s Benefits Advisors handled nearly 175,000 inquiries and
recovered $139.2 million in benefits on behalf of workers and their families
through informal resolution of individual complaints. Many of the 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
2008, 871 new investigations were opened as a result of referrals from Benefits
Advisors.
Inquiry
Statistics
Total Inquiries
Monetary Benefit Recoveries
From Informal Complaint Resolution
Investigations Opened From Inquiry Referrals
174,978
$139.2 million
871
More Than 2,000 Education And Outreach Events Held In FY
2008
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.
Outreach,
Education And Assistance Statistics
Dislocated Worker Rapid Response Sessons
Congressional
Briefings
Compliance Assistance Activities
Other Participant Assistance And Public
Awareness Activities
Total Outreach
Events
830
216
516
520
2,082
Extensive Publication And Web Site Usage Furthers Outreach Efforts
EBSA also reaches workers, retirees, employers, plan service
providers, and the public through its printed materials and website –
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 website,
which includes consumer information, relevant laws and regulations, technical
guidance, seminar schedules, and other valuable resources.
Publication
And Web Site Statistics
Publications Distributed
Web Site Visitors
893,000
2.6 million
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.