EBSA reports $1.4B recovery haul from 2023 enforcement actions

EBSA reports $1.4B recovery haul from 2023 enforcement actions
The DOL unit closed nearly 200 criminal investigations and recovered more than $840 million through formal enforcement actions.
FEB 13, 2024

The Employee Benefits Security Administration successfully recovered more than $1.4 billion for workers, their families, and benefit plans during the fiscal year 2023, the agency revealed Tuesday.

According to the division of the Department of Labor focused on benefit plans, formal enforcement actions alone accounted for more than half of the total recovered last year, amounting to $844.7 million.

“In total, EBSA's enforcement program helped 5,690 terminated vested participants in defined benefit pension plans collect benefits of $429.2 million owed to them,” the agency said in a statement.

Monetary benefit recoveries from informal complaint resolutions accounted for $444.1 million, which arose from the resolution of more than 197,000 inquiries through EBSA's benefits advisors.

"I am incredibly proud to lead this agency that, despite its small size and colossal responsibilities, consistently delivers for America’s workers, retirees, and their families, year after year," said Lisa Gomez, assistant secretary for employee benefits security, who took the helm in 2022.

EBSA’s $1.4 billion recovery haul last year is unchanged from 2022, but down sharply from the $2.4 billion in recoveries it achieved in 2021.

Recoveries from EBSA’s voluntary fiduciary correction and abandoned plan programs were minor but important contributors, representing $84.5 million and $61.2 million, respectively.

Civil investigations played a crucial role in those initiatives, EBSA said, with 731 investigations closed. Of those investigations, 505 were closed with results – leading to a 69% success rate with substantive outcomes – while 50 investigations were referred for litigation.

The agency also managed to close 196 criminal investigations for the 2023 fiscal year. That included 77 individuals – including plan officials, corporate officers, and service providers – who pled guilty or were convicted. Of those, EBSA said 60 individuals were indicted for offenses related to employee benefit plans.

For its 2023 fiscal year, EBSA received 1,192 applications under the voluntary fiduciary correction program, which gives plan officials who identify certain ERISA violations a chance to remedy the breaches without triggering an enforcement action.

Under a related initiative, the delinquent filer voluntary compliance program, EBSA got 18,955 filings.

Among various key areas it focused on, EBSA highlighted the elimination of illegal benefit plan provisions, enhancing fiduciary governance, and expanding access to mental health benefits.

"These victories are clear evidence of the Department of Labor’s continued leadership in keeping President Biden’s promise to be the most pro-worker administration in history," Gomez said.

Daily covered-call ETF an ideal portfolio addition, says ProShares strategist

Latest News

Advisor headcount down at Bank of America, Osaic and UBS so far in 2025, Wolfe Research analyst says
Advisor headcount down at Bank of America, Osaic and UBS so far in 2025, Wolfe Research analyst says

Counting advisor moves in and out of firms requires some art as well as science.

Carson Group's M&A head sees '10-to-15 year bull market' for RIAs
Carson Group's M&A head sees '10-to-15 year bull market' for RIAs

“I'm just a big believer that based on demographics alone, we are looking at a 10-to-15 year bull market in M&A in the RIA and independent wealth space,” said Michael Belluomini, SVP of M&A at Carson Group.

Nationwide finds Medicare myth on long-term care could cost Americans dearly
Nationwide finds Medicare myth on long-term care could cost Americans dearly

As a tsunami of retirees comes crashing in, three-fifths of those surveyed believe – wrongly – that the federal safety net will cover their LTC needs.

Fintech bytes: Orion, Altruist unveil new RIA-focused integrations
Fintech bytes: Orion, Altruist unveil new RIA-focused integrations

Orion's latest update, a partnership with 11th.com, focuses on an underserved area of compliance for advisors and wealth firms.

Raymond James reels in advisors managing $1B+ in Colorado
Raymond James reels in advisors managing $1B+ in Colorado

The latest arrivals, including a 10-advisor ensemble from Ameriprise, bolster the firm's independent contractor and employee advisor channels.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave