2023 DOL Audit Enforcement Outcomes Released

The Department of Labor (DOL) has released the results of its Employee Benefits Security Administration’s (EBSA) enforcement actions during fiscal year (FY) 2023, including the following:

• Over $1.4 billion was recovered for plans, participants, and beneficiaries.
• 731 civil investigations were closed, 69% of which resulted in monetary results for plans or other corrective actions.
• 50 cases were referred for civil litigation.
• 196 criminal investigations were closed, which led to the indictment of 60 individuals, including plan officials, corporate officers, and service providers, for offenses related to employee benefit plans.
• 1,192 applications were received through the DOL’s Voluntary Fiduciary Compliance Program (VFCP).
• 18,955 annual reports were filed through the DOL’s Delinquent Filer Voluntary Correction Program (DFVCP).
• The EFAST2 Help Desk handled over 16,000 inquiries to help filers meet their ERISA reporting obligations.

Employer Action Items

EBSA has been very active in its enforcement efforts. It is especially important for plan sponsors to keep their plans in compliance, and if necessary, take corrective action to remedy any compliance breaches prior to the commencement of any DOL audit.  This includes making use of the DOL’s VFCP and DFVCP programs to bring their plans into compliance.

Summary

The DOL has broad authority to investigate or audit an employee benefit plan’s compliance with ERISA. Its EBSA division handles audits of employee benefit plans. To perform these audits, EBSA employs investigators working out in its field offices, many of whom are lawyers or CPAs or who have advanced degrees in business or finance. The VFCP and DFVCP are two programs available to plan sponsors to take corrective action to remedy breaches and voluntarily report violations to EBSA without becoming subject to an enforcement action.

More Information

EBSA’s fact sheet summarizing its FY 2023 enforcement actions is available here. The EBSA has a dedicated enforcement webpage, which includes outlines of ERISA civil violations and criminal provisions, as well as enforcement accomplishments and national enforcement priorities and projects. There is also an agency enforcement results archive for prior fiscal years.

For questions regarding this Legislative Update or any other related compliance issues, please contact your Burnham Benefits Consultant or Burnham Benefits at 949‐833‐2983 or inquiries@burnhambenefits.com.

This Legislative Update was prepared by the Baldwin Regulatory Compliance Collaborative (the “BRCC”), a partnership of compliance professionals offering client support and compliance solutions for the benefit of the Baldwin Risk Partners organization, which includes: Jason Sheffield, BRP National Director of Compliance; Richard Asensio, Burnham Benefits Insurance Services; Nicole L. Fender, the Capital Group; Bill Freeman, AHT Insurance; Stephanie Hall, RBA/TBA; Caitlin Hillenbrand, AHT Insurance; Paul Van Brunt, Baldwin Krystyn Sherman Partners (BKS); and Natashia Wright, Insgroup.

Burnham Benefits and the BRCC do not engage in the practice of law and this publication should not be construed as the providing of legal advice or a legal opinion of any kind. The consulting advice we provide is intended solely to assist in assessing its compliance with applicable federal and state law requirements, and is based on our interpretation of federal guidance in effect as of the date of this publication. To the best of our knowledge, the information provided herein, and assumptions relied on, are reasonable and accurate as of the date of this publication. Furthermore, to ensure compliance with IRS Circular 230, any tax advice contained in this publication is not intended to be used, and cannot be used, for purposes of (i) avoiding penalties imposed under the United States Internal Revenue Code or (ii) promoting, marketing or recommending to another person any tax-related matter.