DOL Investigations of Retirement Plans: 10 Key Areas to Focus

Department of Labor, US issued ERISA (Employee Benefits Security Administration) to protect and benefit the employees after retirement. ERISA mainly covers welfare benefit plans and retirement plans. We, the team of Sustainable Investing, are here to assist you with all kinds of plans for touchstone investments

We have observed that the United States Department of Labor has been noticeably active nowadays. Under the Employee Retirement Income Security Act 1974, the federal agency enforced fiduciary duties and ended up recovering finance for the ERISA retirement plans. 

However, we have highlighted 10 key areas of DOL retirement plans for everyone to know.

10 notable areas to point out in DOL retirement plans

  1. Since 2015, the Department of Labor is monitoring if benefit plan administrators are looking for the unresponsive participants. The missing candidates won’t be able to fetch the payable retirement benefits if they remain silent.
  2. The DOL investigation team is giving their best efforts in securing employee contributions. Furthermore, the team is working hard to affix the contributions to the contributory health plans and retirement plans as assets. 
  3. DOL is responsible for the proper maintenance of the plan documents and disclosures. The papers will display the plan description, the receipt of the plan service provider’s disclosures, and more. Feel free to contact our team to know in detail. 
  4. As per our experience, DOL is always up to the evidence of bond. If a plan is without a bond, DOL will have the bond before ceasing the investigation. 
  5. The US Department of Labor remains cautious while reviewing the plans. The team makes sure that the plan’s claims follow the claims regulations prepared by DOL. We find this process very significant. 
  6. The investigating team inspects if the plan is involved in prohibited transactions or breaches of fiduciary duty. It is to mention that DOL approves such transactions only in exceptional cases. Get in touch with the Sustainable Investing experts to gain more insights into this context.
  7. DOL takes strict initiatives to monitor undisclosed indirect compensations. The enforcement team delivers 404a-5 disclosures of the same plan to the participant. Moreover, DOL assists in scrutinizing the process to spot fraudulent activities in the entire process. 
  8. In 2012, DOL was alleged by GAO of not taking adequate steps to modulate retirement plan investments in private equity funds and hedge funds. Now DOL is elevating enforcement in this area under the supervision of the investigating team. 
  9. DOL is assigned to investigate the plans that provide investment funds or services to retirement plans. 
  10. Since 2005, DOL has been highlighting ESOPs (Employee Stock Ownership Plans) for a thorough investigation. The investigating team primarily focuses on monitoring if the employer securities are rightly assessed. 

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