Today, the Subcommittee on Health, Employment, Labor, and Pensions held a
hearing to examine how the Employee Benefits Security Administration (EBSA) can better protect the retirement savings of American workers.
Subcommittee Chairman Rick Allen (R-GA) outlined how the Biden-Harris administration failed to uphold this mission and keep the trust of the American people. “EBSA ran burdensome and inefficient employee benefit plan investigations that lasted for years with repetitive document requests, staff turnover, and delayed findings. The Biden-Harris playbook wasted the taxpayers’ money and the money of the employers under investigation. Endless and aimless investigations conducted by EBSA wasted precious time and resources, and ultimately hurt American savers,” he said.
Rep. Mike Rulli (R-OH) discussed how his bill, the
Balance the Scales Act, is needed to increase transparency and oversight on how the Department of Labor (DOL) engages with plaintiffs’ attorneys in cases regarding employee benefit plans. “Transparency helps build trust. EBSA has a history of ignoring both Congress and the industry, the [Employee Stock Ownership Plan (ESOP)] community knows this well from our decades-long struggle for proper regulation. Therefore, legislation is needed to force these needed, long-lasting reforms,” said
Mr. Jim Bonham, President and CEO of The ESOP Association.
In an exchange with
Mr. Andy Banducci, Senior Vice President for Retirement and Compensation Policy at The ERISA Industry Committee,
Rep. Ryan Mackenzie (R-PA) highlighted how most employers aren’t bad actors despite EBSA’s predatory behavior suggesting otherwise. “Large employers in particular are mostly doing the right thing and providing benefits to tens of millions of workers and their families. EBSA ought to begin with that premise and understanding,” Mr. Banducci said.
Rep. Randy Fine (R-FL) noted how even though employers might win the lawsuits that are filed against them, it still sets job creators back. “If you have millions of dollars in legal fees, you still lost. Because you lost money you had and you had distractions from operating your actual business,” he stated.
Chairman Tim Walberg (R-MI) asked witnesses how EBSA’s history of secretly sharing information with plaintiffs’ attorneys impacts employers’ willingness to cooperate with EBSA’s investigations. “It has had a chilling effect. In the cases I’m involved with… there is a natural reluctance to produce information and to cooperate,” said
Mr. Lars Golumbic, Principal at the Groom Law Group, Chartered.
Rep. Virginia Foxx (R-NC) called out the Democrat-invited witness who refused respond fully to the Committee’s oversight questions when he served as Principal Deputy Assistant Secretary of EBSA in the Biden-Harris administration. Once again, as a witness during today’s hearing, he did not provide a direct answer pertaining to his knowledge about EBSA personnel providing privileged information to outside parties. Rep. Foxx stated: “We’ve received information from EBSA over a year after our initial inquiry that a total of 54 cases were still open almost eight years after they were opened. Worse, only three of these cases were being actively investigated, meaning the rest were still being held open without resolution. You are not in a position to tell this Committee that there is no evidence to support additional transparency and oversight at EBSA. Sunlight is the best disinfectant,” she said to Mr.
Ali Khawar, Founder and President of FCP, LLC.
Rep. Lisa McClain (R-MI) highlighted how her legislation, the
EBSA Investigations Transparency Act, would help hold the government accountable to a higher standard and move EBSA cases to a close rather than linger on for years. “I’m the employer so I have to give [EBSA] everything right now but once I give it to [EBSA, they] can take as long as [they] want. [This] seems a little unfair, doesn’t it?” she posed.
Bottom line: Committee Republicans remain steadfast in our work to implement policies that protect the retirement savings of workers, retirees, and their families and that eliminate the wasteful and abusive government practices of the Biden-Harris administration.
