Securities Fraud Stock Broker Lawyers Lawsuits

History of EBSA and ERISA

The Employee Benefits Security Administration is responsible for administering and enforcing the fiduciary, reporting and disclosure provisions of Title I of the Employee Retirement Income Security Act of 1974 (ERISA). At the time of its name change in February 2003, EBSA was known as the Pension and Welfare Benefits Administration (PWBA). Prior to January 1986, PWBA was known as the Pension and Welfare Benefits Program. At the time of this name change, the Agency was upgraded to a sub-cabinet position with the establishment of Assistant Secretary and Deputy Assistant Secretary positions.
On This Page

Pre-ERISA Legislation
ERISA



The provisions of Title I of ERISA, which are administered by the U.S. Department of Labor, were enacted to address public concern that funds of private pension plans were being mismanaged and abused. ERISA was the culmination of a long line of legislation concerned with the labor and tax aspects of employee benefit plans. Since its enactment in 1974, ERISA has been amended to meet the changing retirement and health care needs of employees and their families. The role of EBSA has also evolved to meet these challenges.

The administration of ERISA is divided among the U.S. Department of Labor, the Internal Revenue Service of the Department of the Treasury (IRS), and the Pension Benefit Guaranty Corporation (PBGC). Title I, which contains rules for reporting and disclosure, vesting, participation, funding, fiduciary conduct, and civil enforcement, is administered by the U.S. Department of Labor. Title II of ERISA, which amended the Internal Revenue Code to parallel many of the Title I rules, is administered by the IRS. Title III is concerned with jurisdictional matters and with coordination of enforcement and regulatory activities by the U.S. Department of Labor and the IRS. Title IV covers the insurance of defined benefit pension plans and is administered by the PBGC.

Prior to a 1978 reorganization, there was overlapping responsibility for administration of the parallel provisions of Title I of ERISA and the tax code by the U.S. Department of Labor and the IRS, respectively. As a result of this reorganization, the U.S. Department of Labor has primary responsibility for reporting, disclosure and fiduciary requirements; and the IRS has primary responsibility for participation, vesting and funding issues. However, the U.S. Department of Labor may intervene in any matters that materially affect the rights of participants, regardless of primary responsibility.

As a result of the enactment of the Federal Employees' Retirement System Act of 1986 (FERSA), EBSA has fiduciary and auditing oversight of the Thrift Savings Plan that was established by this Act.



Pre-ERISA Legislation

Initially, the IRS was the primary regulator of private pension plans. The Revenue Acts of 1921 and 1926 allowed employers to deduct pension contributions from corporate income, and allowed for the income of the pension fund's portfolio to accumulate tax free. The participant in the plan realized no income until monies were distributed to the participant, provided the plan was tax qualified. To qualify for such favorable tax treatment, the plans had to meet certain minimum employee coverage and employer contribution requirements. The Revenue Act of 1942 provided stricter participation requirements and, for the first time, disclosure requirements.

The U.S. Department of Labor became involved in the regulation of employee benefits plans upon passage of the Welfare and Pension Plans Disclosure Act in 1959 (WPPDA). Plan sponsors (e.g., employers and labor unions) were required to file plan descriptions and annual financial reports with the government; these materials were also available to plan participants and beneficiaries. This legislation was intended to provide employees with enough information regarding plans so that they could monitor their plans to prevent mismanagement and abuse of plan funds. The WPPDA was amended in 1962, at which time the Secretary of Labor was given enforcement, interpretative, and investigatory powers over employee benefit plans to prevent mismanagement and abuse of plan funds. Compared to ERISA, the WPPDA had a very limited scope.



ERISA

The goal of Title I of ERISA is to protect the interests of participants and their beneficiaries in employee benefit plans. Among other things, ERISA requires that sponsors of private employee benefit plans provide participants and beneficiaries with adequate information regarding their plans. Also, those individuals who manage plans (and other fiduciaries) must meet certain standards of conduct, derived from the common law of trusts and made applicable (with certain modifications) to all fiduciaries. The law also contains detailed provisions for reporting to the government and disclosure to participants. Furthermore, there are civil enforcement provisions aimed at assuring that plan funds are protected and that participants who qualify receive their benefits.

ERISA covers pension plans and welfare benefit plans (e.g., employment based medical and hospitalization benefits, apprenticeship plans, and other plans described in section 3(1) of Title I). Plan sponsors must design and administer their plans in accordance with ERISA. Title II of ERISA contains standards that must be met by employee pension benefit plans in order to qualify for favorable tax treatment. Noncompliance with these tax qualification requirements of ERISA may result in disqualification of a plan and/or other penalties.

Important legislation has amended ERISA and increased the responsibilities of EBSA. For example, the Retirement Equity Act of 1984 reduced the maximum age that an employer may require for participation in a pension plan; lengthened the period of time a participant could be absent from work without losing pension credits; and created spousal rights to pension benefits through qualified domestic relations orders (QDROs) in the event of divorce, and through pre-retirement survivor annuities. The Omnibus Budget Reconciliation Act of 1986 eliminated the ability of employers to limit participation in their retirement plans for new employees who are close to retirement and the ability to freeze benefits for participants over age 65. The Omnibus Budget Reconciliation Act of 1989 requires the Secretary of Labor to assess a civil penalty equal to 20% of any amount recovered for violations of fiduciary responsibility.

The department's responsibilities under ERISA have also been expanded by health care reform. The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) added a new part 6 to Title I of ERISA which provides for the continuation of health care coverage for employees and their beneficiaries (for a limited period of time) if certain events would otherwise result in a reduction in benefits. More recently, the Health Insurance Portability and Accountability Act of 1996 (HIPAA) added a new Part 7 to Title I of ERISA aimed at making health care coverage more portable and secure for employees, and gave the department broad additional responsibilities with respect to private health plans.

Release No. Date Details
34-49873 Jun. 16, 2004 Interagency Statement on Sound Practices Concerning Complex Structured Finance Activities; Extension of Comment Period
File No.: S7-22-04
Comments Due: July 19, 2004
Comments received are available for this proposal.
Click to submit comments on S7-22-04
34-49695 May 13, 2004 Interagency Statement on Sound Practices Concerning Complex Structured Finance Activities
File No.: S7-22-04
Comments Due: See release 34-49873
Comments received are available for this proposal.
Click to submit comments on S7-22-04
34-48545 Sep. 25, 2003 Business Continuity Planning for Trading Markets
File No.: S7-17-03
Effective Date: October 1, 2003
Comments Due: October 31, 2003
Comments received electronically are available for this proposal.
33-8221 Apr. 25, 2003 Commission Statement of Policy Reaffirming the Status of the FASB as a Designated Private-Sector Standard Setter
Release No.: 34-47743
33-7993 Jul. 17, 2001 Commission Policy Statement on the Establishment and Improvement of Standards Related to Auditor Independence

33-7568 Aug. 27, 1998 Commission Statement of Policy on Regulatory Moratorium to Facilitate the Year 2000 Conversion

34-40306 Aug. 5, 1998 Final Statement of Policy: Alternative Dispute Resolution Policy
Effective Date: date of publication in Federal Register
33-7507 Feb. 18, 1998 Commission Statement of Policy on the Establishment and Improvement of Standards Related to Auditor Independence
Effective Date: 30 days after publication in Federal Register
33-7382 Jan. 22, 1997 Policy Statement: Designation of Small Business Compliance Guides
Effective Date: date published in Federal Register
34-29185 Policy Statement: Automated Systems of Self-Regulatory Organizations (II)
Effective Date: May 9, 1991

34-27445 Policy Statement: Automated Systems of Self-Regulatory Organizations
Effective Date: November 16, 1989

Additional Archives
2006 | 2005 | 2004 | 2003 | 2002 | 2001 |
2000 | 1999 | 1998 | 1997 | 1996 | 1995

Release No. Date Action
First Quarter
LR-19554 Feb. 3, 2006 Edward S. Digges, Jr.; Nexstar Communications, LLC; TMT Equipment Company, LLC; TMT Management Group, LLC; POSA, LLC; POSA TMT, LLC; Televest Communications, LLC; Televest Group, LLC and Spin Drift, LLC
LR-19553 Feb. 2, 2006 William A. Day
LR-19552 Feb. 2, 2006 Ronald Ferguson, Elizabeth Monrad, Robert Graham, Christopher Garand, and Christian Milton
See also: Complaint in this matter
LR-19551 Feb. 2, 2006 Wallace Nakano
LR-19550 Jan. 31, 2006 Mark Kishel
LR-19549 Jan. 31, 2006 Victor J. Menezes
See also: Complaint in this matter
LR-19548 Jan. 30, 2006 Thomas P. Clark
Other Release No.: AAER-2368
LR-19547 Jan. 30, 2006 WMDS, Inc. et al.
See also: Complaint in this matter
LR-19546 Jan. 30, 2006 U.S. Wind Farming, Inc., William L. Telander, et al.
LR-19545 Jan. 27, 2006 Teresa V. Fernandez
LR-19544 Jan. 26, 2006 James J. McDermott, et al.
LR-19543 Jan. 26, 2006 Allan Boren, et al.
LR-19542 Jan. 25, 2006 Morgan Cooper, et al.
LR-19541 Jan. 24, 2006 Paul Simmons, Rodney Gilbert, John Zankowski, Esq., Kerry Kennedy, Stanley Siciliano and Eric Littman, Esq.
LR-19540 Jan. 24, 2006 Learn Waterhouse, Inc.; Randall Treadwell; Rick D. Sluder; Larry C. Saturday; and Arnulfo M. Acosta
LR-19539 Jan. 23, 2006 Ernesto Sibal, et al.
LR-19538 Jan. 23, 2006 Mark Kishel
See also: Complaint in this matter
LR-19537 Jan. 20, 2006 Stansbury Holdings Corporation, Aldine J. Coffman, Jr., Dennis R. Staal, CPA, Richard E. Sellers, CPA, and Sellers & Associates P.C.
LR-19536 Jan. 20, 2006 Fortress Financial Group, Inc. and Jeffrey A. Richie
LR-19535a Jan. 20, 2006 i2 Technologies, Inc.
See also: Court order; SEC'S Unopposed Motion for Approval of Distribution Plan
LR-19534 Jan. 20, 2006 Groh Asset Management, Inc. and Roger A. Groh
See also: Complaint in this matter
LR-19533 Jan. 20, 2006 Eric Tyra, Scott Wynne, Peter Berman, and Scott Carey
LR-19532 Jan. 19, 2006 Sport-Haley, Inc., Steve S. Auger, and Kenneth R. LeCrone
Other Release No.: AAER-2364
LR-19531 Jan. 18, 2006 Deog Kyoon Jeong
See also: Complaint in this matter
LR-19530 Jan. 13, 2006 Roger A. Householder
LR-19529 Jan. 13, 2006 Kimberly J. Carrella, et al.
LR-19528 Jan. 12, 2006 Thomas J. Bucknum
See also: Complaint in this matter
LR-19527 Jan. 10, 2006 Richard A. Svoboda and Michael A. Robles
LR-19526 Jan. 10, 2006 Daniel Calugar and Security Brokerage, Inc.
LR-19525 Jan. 10, 2006 Anthony F. Giordano
See also: Complaint in this matter
LR-19524 Jan. 6, 2006 eWealth Securities, Inc., et al.
LR-19523 Jan. 5, 2006 David M. Faubert, et al.
LR-19521 Jan. 4, 2006 Alan C. Goldsworthy, Walter T. Hilger, and Mark E. Sullivan
Other Release No.: AAER-2361
See also: Complaint in this matter
LR-19520 Jan. 4, 2006 McAfee, Inc.
Other Release No.: AAER-2360
See also: Complaint in this matter
LR-19519 Jan. 3, 2006 Dennis S. Herula et al.
LR-19518 Jan. 3, 2006 Lee David Edelman
See also: Complaint in this matter
LR-19517 Jan. 3, 2006 Karnig H. Durgarian, Jr.,Donald F. McCracken, Ronald B. Hogan, Virginia A. Papa, Kevin F. Crain, and Sandra G. Childs
See also: Complaint in this matter