What are the DOL’s Enforcement Priorities?

With more focus than ever on defined contribution (DC) plans like 401ks, the DOL priority list includes ramping up enforcement activities nationally and locally. At a national conference, ERISA attorney Nicholas White from Trucker Huss revealed the top priorities of EBSA, the DOL’s ERISA enforcement arm.

There are 3 national initiatives under way that outline the DOL priorities including:

1. REACT (Rapid ERISA Action Team) focused on bankrupt or financially distressed companies looking to:

a. Preserve Assets

b. Ensure all contributions have been made

c. Protect plan rights

d. Identify the fiduciaries

2. Criminal project focused on egregious and persistent violators who may have improperly converted assets for business or personal use along with theft.

3. Consultant/Advisor Project (CAP) looking to make sure advisors and providers have made proper fee and conflicts disclosures to ensure that plan sponsors understand fee arrangements with an eye towards improper compensation that may have been received by the advisor or provider.

Other initiatives are focused on the 5500 Form especially around a new disclosure requirement focused on benefits owed to participants due to late payments.

Local initiatives that are likely to gain national attention include late deposits of elective contributions and loan repayments as well excessive fees paid to advisors and providers.