Pontiac Times

Rep. Lisa McClain (R-Mich.) has introduced new legislation aimed at enhancing accountability and transparency within the Employee Benefits Security Administration (EBSA). The proposed law addresses concerns from organizations about the lengthy and complex investigations conducted by the EBSA, which many have described as obscure and burdensome.

The bill intends to correct these issues by requiring the EBSA to provide Congress with comprehensive information on its investigations, thereby curtailing what has been perceived as unchecked authority.

"Washington bureaucrats should not be able to harass job creators and plan sponsors under the guise of oversight without transparency or recourse,” McClain stated. She emphasized the need for businesses and nonprofits to operate without being entangled in bureaucratic procedures. "This bill restores fairness to the process and demands accountability from unelected regulators," McClain added.

Echoing McClain's sentiments, Education and Workforce Committee Chairman Tim Walberg (R-Mich.) commented, "Congress granted investigative authority to EBSA to protect workers’ benefits. Unfortunately, bureaucrats drove EBSA from its intended purpose and bogged down retirement plans with investigations that often take years. This legislation will provide much needed transparency and stop future administrations from playing politics with Americans’ retirement."

The legislation has garnered support from industry representatives like James Gelfand, President & CEO of The ERISA Industry Committee, who said, “ERIC applauds the introduction of the EBSA Investigations Transparency Act. Regulators should see plan sponsors as key partners in enhancing health care and retirement security." He criticized the current investigative process as having "shifting scope, moving goalposts, and burdensome demands for irrelevant information," highlighting the necessity for the proposed changes.

The background to this legislation includes ongoing criticisms of EBSA's efficiency. Title I of the Employee Retirement Income Security Act of 1974 established the EBSA to oversee private retirement and health plans, protecting the rights of workers, retirees, and their families. However, a May 2021 report by the Government Accountability Office highlighted inefficiencies, noting that 17 percent of investigations initiated in 2017 were still unresolved four years later. Many plan sponsors have reported investigations that seem endless, involving constant document requests and interviews.

Further details about the bill are available for those interested in exploring the specifics of the proposed legislative changes.