Look for EBSA, the DOL group that enforces ERISA, to be even more assertive based on comments from an EBSA regional director in Philadelphia as well as the agency’s Assistant Secretary herself, Phyllis Borzi. And while the DOL may begin an investigation on one issue, it may expand beyond that if it finds something of interest.
The Philadelphia director specifically mentioned excessive participant fees as an area of interest, helped along by new regulations that require plans to spell out those fees. So while most participants may not have acted as a result of last year’s 404(a)(5) fee disclosures, the DOL is — looking at the disclosure documents, the fiduciaries and the justification for what it considers to be excessive fees, trying to determine which or who is at fault.
Borzi echoed the regional director’s comments, but also mentioned other initiatives, including:
• Failure to allocate contributions
• Protecting plan assets in distressed companies
• Elimination of improper and undisclosed compensation to advisors
• Ferreting out advisors who give poor ERISA advice
Though investigations can begin with a participant inquiry, other triggers include Form 5500 filings.
