Daniel Aronowitz Confirmed as Head of DOL’s EBSA

The Senate confirmed Daniel Aronowitz as assistant secretary of labor for the Employee Benefits Security Administration on Thursday.

EBSA is responsible for enforcement of the Employee Retirement Income Security Act and related laws and regulations, along with protecting employer-based retirement, health and welfare benefits for workers and retirees.

During his June 5 confirmation hearing, the former president of Encore Fiduciary pledged to streamline retirement plan oversight and end the ‘war’ on employee stock ownership plans, also known as ESOPs. Later in June, the Senate Committee on Health, Education, Labor, and Pensions voted to approve Aronowitz’s nomination.

Daniel Aronowitz

In July, the ESOP Association launched a paid campaign urging the Senate to confirm him as EBSA’s head.

“Dan Aronowitz has a stellar record and a deep understanding of the challenges and obstacles faced by ESOPs as well as companies wanting to transition to employee ownership,” said James Bonham, president and CEO of the ESOP Association, in a statement released after Aronowitz’s confirmation.

Aronowitz succeeds Janet Dhillon, who had been acting assistant secretary of labor, according to EBSA’s organizational chart.

Aronowitz, an expert in insurance for employee benefit providers, including ERISA fiduciaries, has 30 years of experience in the professional liability industry as a coverage lawyer and underwriter.

During his confirmation hearing, he stressed that he intends to make clear that fiduciaries, not the DOL or plaintiffs’ lawyers, should decide what is best for retirement plan participants.

His confirmation comes at an especially busy time, given that:

• EBSA faces several rulemaking projects related to the SECURE 2.0 Act of 2022;
• President Donald Trump tasked the DOL and regulators with increasing access to alternative investments, including private market assets and digital currencies, as retirement plan investments; and
• Congress recently advanced bills that would affect the DOL’s audit process and ESOP valuation risks.