In recent testimony before Congress, Andy Banducci, Senior Vice President for Retirement and Compensation Policy at The ERISA Industry Committee (ERIC), raised concerns about how the Department of Labor’s (DOL) Employee Benefits Security Administration (EBSA) conducts investigations of employer-sponsored benefit plans.
“EBSA has a serious responsibility to protect workers and is expected to play a vital role in helping plan sponsors navigate complex benefits laws. However, employers who are investing millions of dollars in compliance, and take pride in the benefits programs they offer to workers, describe a troubling reality — wandering investigations and a ‘gotcha’ approach to enforcement,” said Banducci. “These lengthy and ever-evolving investigations are costly, time-consuming, and divert resources away from higher wages, better benefits, and investments that create jobs. The legislative solutions discussed at the hearing go a long way toward ensuring regulatory agencies are transparent, accountable, and collaborative—rather than adversarial—in their oversight of America’s job creators.”
Over the years, ERIC member companies have described five persistent issues with EBSA investigations:
- Investigations take far too long, sometimes stretching many years without resolution.
- Internal handoffs within DOL—between offices or personnel—create unnecessary delays and waste resources.
- A double standard exists, where employers must respond quickly to requests, but EBSA often goes silent without explanation for months or years, offering no guidance to employers so they can resolve potential issues.
- Investigations lack focus, often resembling fishing expeditions with overly broad document demands.
- Transparency is lacking, especially regarding whether and how EBSA coordinates with plaintiffs’ attorneys.
To address these issues, ERIC shared its support for the EBSA Investigations Transparency Act and the Balance the Scales Act. These bills would bring fairness, clarity, and accountability to the investigative process.
ERIC urges employers to stay informed and engaged as Congress considers reforms to protect benefit plan integrity and restore balance to oversight.