EBSA Sets Out Carrot, Stick Agenda
September 18, 2009 (PLANSPONSOR.com) - When it comes
to employee benefit plans, there's a new sheriff in
town.
Actually, newly enshrined Assistant Secretary of Labor
Phyllis Borzi (see
Borzi EBSA
Nomination Approved by Senate
) told the audience at the ASPPA/DoL Speaks conference in
Washington, D.C., last week that, while her boss (Labor
Secretary Hilda Solis) is fond of the new sheriff mantra,
she prefers to say that now there
is
a sheriff in town—and one that talks as though it will use
both a carrot
and
a stick.
While early bets are that the new leadership at DoL will
set a different course (some say a
very
different course) than its predecessors, Borzi laid out a
new and vigorous plan for the Employee Benefits Security
Administration (EBSA) that she now heads. "Right now
we have a full plate," she acknowledged, but it was
clear that enforcement of the law and promises made will be
a driving focus.
"The previous Administration focused on compliance
assistance," she noted, "but that's only good if it is
combined with strong enforcement."
Borzi noted that EBSA had racked up more than $1 billion
in recoveries for ERISA plans in 2008, with some 3,500
civil investigations, and that the agency had pursued
litigation in 91 cases (see "
EBSA FY 2008 Enforcement Reaps $1.2B, 101 Indictments
").
On the criminal side, she said that 212 criminal
investigations had been closed, including 101 cases against
individuals.
One of those individuals, she reminded the audience, was
none other than Michael Vick, who had used assets in a
401(k) plan to pay his legal fees (see "
Michael Vick Sued for Prohibited Pension Transfers
").
2010 Goals
As for 2010 goals, Borzi cited a new national
priority—the "delayed remittance of contributions."
She also said that there would be a "new contributory plan
criminal project" that would focus on criminal
investigations of individuals involved with the
embezzlement of plan funds, including those who withhold
money from worker paychecks without depositing them, and
those who knowingly file false 5500 information.