EBSA Restores over $1.4 Billion to Employee Benefit Plans, Participants & Beneficiaries in 2023.
The Employee Benefits Security Administration (EBSA) is the federal agency within the US Department of Labor tasked with enforcing the rules and regulations set forth by the Employee Retirement Income Security Act of 1974 (ERISA).
In FY 2023, the EBSA restored $1.435 billion to ERISA Health & Welfare and Retirement Plans, and their participants and beneficiaries.
As part of their effort to uphold the integrity of the private employee benefit plan system within the US, EBSA regularly conducts audits of ERISA plans offered by private businesses.
When they find businesses and fiduciaries are out of compliance, they are quick to issue fines, penalties and excise taxes – which are used to restore funds to plans that rightfully belong to their participants and beneficiaries.
As part of this effort, EBSA closed 731 Civil Investigations in 2023. Of those, 505 (or 69%) produced monetary results for plans or other corrective actions. This resulted in a total of $844.7 million in recoveries, and the removal of 20 fiduciaries from plans, plus 41 individuals being barred from serving as fiduciaries.
During 2023, EBSA also closed 196 Criminal Investigations which led to the indictment of 60 individuals including plan officials, corporate officers, and service providers for their offenses.
To learn more details, view EBSA’s 2023 Fact Sheet here.
Does your business offer ERISA-covered plans to employees?
If you are a plan sponsor or fiduciary responsible for an ERISA Health & Welfare or Retirement Plan, you are required to be in compliance with ERISA or you can be held personally liable for restoring losses.
EBSA investigations are very serious. As you can see, they regularly bring about civil and criminal cases that can ruin a businesses reputation, and the reputations of the individuals who serve on the leadership team.
Audits of your ERISA Plan can take many months or even years to complete, and the costs both in time and financially, can be devastating.
If you are not already working with an experienced ERISA Independent Fiduciary with decades of experience in plan compliance – then consider speaking with one today so you are prepared to protect yourself against this.
At the ERISA Advisory Group, our Founder & President William Kropkof, CEBS, has nearly 30 years of experience in this industry.
He’s been an independent fiduciary specializing in ERISA compliance since 1995, and before that he worked as a DOL Investigator tasked with investigating ERISA plans for 7 years.
William has seen all sides of ERISA compliance. Which is why he’s regularly sought after as an expert witness to testify in cases brought by the top ERISA law firms in the nation.
And many of his clients are large companies and co-employment organizations with complex plans, including Multiple-Employer Plans such as MEWAs, ESOPs, MEPs and more.
If you have questions or need advice about keeping your plan compliant, then book a Free Consultation with William Kropkof, CEBS today.
The ERISA Advisory Group offers ERISA Fiduciary Consulting and ERISA Fiduciary Services to businesses that are a good fit.
Schedule a free consultation now to see if you qualify.