Fact SheetEBSA Achieves $1.05 Billion in Total Monetary Results in Fiscal Year 2010Through 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 over 708,000 retirement plans, 2.8 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 over $5 trillion.
Civil Investigation Statistics Demonstrate Success In TargetingIn FY 2010, EBSA closed 3,112 civil investigations, with 2,301 (73.94%) 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 2010, 264 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 2010, litigation was filed in 128 civil cases.
EBSA Investigations Led To The Indictment Of 96 Persons For Crimes Related To Employee Benefit Plans in FY 2010EBSA 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 2010, EBSA closed 281 criminal investigations. EBSA's criminal investigations, as well as its participation in criminal investigations with other law enforcement agencies, led to the indictment of 96 individuals – including plan officials, corporate officers, and service providers – for offenses related to employee benefit plans.
Compliance Assistance Programs Yielded Positive ResultsEBSA'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 2010, EBSA received 1,786 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 2009. An online filing and payment option added during FY 2009 has made the program even easier to use.
$164.6 Million Restored to Workers Through Informal Complaint ResolutionWhen workers experience a problem with an employee benefit plan, EBSA has proven effective in resolving their requests for assistance. In FY 2010, EBSA's Benefits Advisors handled nearly 377,000 inquiries and recovered $164.6 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 2010, 1,064 new investigations were opened as a result of referrals from Benefits Advisors.
More Than 1,400 Education And Outreach Events Held In FY 2010EBSA also conducted 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, providing compliance assistance to employers, 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.
Extensive Publication And Web Site Usage Expanded Outreach EffortsEBSA reached 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.
American Recovery and Reinvestment ActEBSA implemented a new program in February 2009 with the enactment of the American Recovery and Reinvestment Act of 2009 (ARRA). This new law provided that eligible individuals pay only 35 percent of their COBRA premiums and the remaining 65 percent is reimbursed to the coverage provider through a tax credit. To qualify, individuals must experience a COBRA qualifying event that is the involuntary termination of a covered employee's employment. The involuntary termination had to occur during the period that began September 1, 2008 and ended on May 31, 2010. The premium reduction lasts for up to 15 months. Individuals who are denied the premium reduction may submit an application to EBSA to review the denial. Denial applications are required by law to be processed within 15 business days.
From the inception of the program in February 2009, there have been 3.45 million visitors to our dedicated webpage on the COBRA subsidy program. Over 80,000 individuals subscribed to the page to receive updates on new guidance and information on the program. 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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