The DOL’s pace of enforcement has produced staggering numbers. For example, in fiscal year 2011, the Employee Benefits Security Administration (“EBSA”), which is the enforcement arm of the DOL, collected over $1.3 billion in fines and asset recovery from ERISA qualified Plan Sponsors. More than 74% of its audits produced economic penalties for the plans it audited. What is the DOL trying to say?
An independent ERISA 3(16) Plan Administrator that offers comprehensive service can relieve plan sponsors, and their in-house fiduciaries, of the responsibility of managing an ERISA retirement plan and avoid the DOL’s crackdown. As responsibilities borne by Plan Sponsors are shifted to an outsourced Plan Administrator, the plan sponsor’s risk management profile is vastly improved.
