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Text of DOL Inspector General Report to Congress, Including Findings and Recommendations for EBSA (PDF)

116 pages. "OIG continues to recommend the following legislative actions: [1] Repeal ERISA's limited-scope audit exemption.... [2] Expand the authority of [EBSA] to correct substandard benefit plan audits and ensure that auditors with poor records do not perform additional plan audits.... [3] Require direct reporting of ERISA violations to DOL ... [4] Strengthen criminal penalties.... The OIG remains concerned over [EBSA's] ability to protect the benefit plans of about 158 million workers, retirees, and their families under [ERISA]. In particular, the OIG is concerned about the statutory limitations on EBSA's oversight authority and inadequate resources to conduct compliance and enforcement."

DOL Inspector General Audit Report: Small Pension Plans Receiving Audit Waivers Need More Frequent Review (PDF)

"The OIG found EBSA did not provide sufficient oversight of small plans claiming the audit waiver. While Small Pension Plan Audit Waiver (SPPAW) regulations have existed since 1976, EBSA performed reviews of plan filings claiming audit waivers only two times: once in Fiscal Year 2008, and once in 2011.... EBSA's Office of Chief Accountant did not independently confirm numbers reported by the plans, and therefore, did not have sufficient assurance of the accuracy of the amounts reported and the plans' ultimate eligibility for waivers."

DOL Inspector General Says More Oversight Needed for Lump Sum Cash Balance Plan Distributions (PDF)

Report dated March 29, 2002; 29 pages. Excerpt: We audited the conversion and distribution processes in 60 converted cash balance plans to determine if PWBA needed to increase enforcement efforts.... [I]n 13 of those 60 plans, we found that workers who left employment before normal retirement age did not receive all the accrued benefits to which they were legally entitled ...

DOL Inspector General Semiannual Report to Congress (PDF)

104 pages. "Legislative changes to [ERISA] and criminal penalties for ERISA violations would enhance the protection of assets in pension plans. To this end, the OIG recommends the following legislative actions: [1] Repeal ERISA's limited-scope audit exemption.... [2] Expand the authority of [EBSA] to correct substandard benefit plan audits and ensure that auditors with poor records do not perform additional plan audits.... [3] Require direct reporting of ERISA violations to DOL.... [4] Strengthen criminal penalties in Title 18 of the U.S. Code."

Text of DOL Inspector General Report: Changes Are Still Needed in the ERISA Audit Process to Increase Protections for Employee Benefit Plan Participants (PDF)

"Despite EBSA's significant efforts to improve oversight and audit quality, protections and assurances have decreased over time for participants and beneficiaries.... The percentage of plans electing limited scope audits has grown from about 46 percent in 1987 to approximately 70 percent in 2010.... While the use of limited scope audits is a major obstacle in providing audit protections for plan participants, EBSA could have done more within the existing law to improve audit quality.... We recommended the Assistant Secretary for Employee Benefits Security continue to seek repeal of the limited scope audit exemption and obtain authority over plan auditors. We also recommended that in the interim, EBSA: (1) use existing authority to clarify and strengthen limited scope audit regulations and evaluate the ERISA Council recommendations, (2) make better use of available enforcement tools over IQPAs, (3) improve procedures in audit quality reviews, and (4) perform a reassessment of audit quality."

DOL OIG Report: EBSA Faced Challenges Enforcing Compliance with Mental Health Parity Laws and Requirements (PDF)

41 pages. "[The] audit identified challenges that limited EBSA's efforts to enforce compliance with mental health parity NQTL laws and requirements.... EBSA lacked critical tools to enforce compliance and deter parity violations, such as the ability to assess civil monetary penalties or bring actions against all responsible parties. EBSA did not use many of the enforcement tools within its authority to ensure health plans' compliance. It also took up to 3 years to complete NQTL comparative analysis reviews."

EBSA Response to DOL's OIG Report: 'EBSA Needs to Do More to Protect Retirement Plan Assets From Conflicts of Interest' (PDF)

2 pages. Excerpt: [EBSA] not only agrees with the recommendations included in the report, we are committed to completing work on both recommendations at the earliest possible date.

OIG Audit Report: EBSA Can Provide Greater Oversight of the Thrift Savings Plan by Strengthening Its Audit Program (PDF)

35 pages. "EBSA did not conduct effective oversight of the TSP for several reasons. [1] EBSA lacked an ongoing process for assessing changes in risks to the TSP over time.... [2] EBSA's oversight was not transparent.... [3] EBSA lacks sufficient legal authority to require the Board to act on its recommendations.... Notwithstanding the limits of its legal authority, EBSA needs to strengthen its oversight practices to provide greater assurance that plan assets and personal and financial information are safeguarded."

DOL OIG Semi-Annual Report to Congress (PDF)

176 pages. "The OIG remains concerned about [EBSA's] ability to protect the integrity of pension, health, and other benefit plans of about 153 million workers, retirees, and their families under [ERISA]. In particular, the OIG is concerned about the statutory limitations on EBSA's oversight authority and inadequate resources to conduct compliance and enforcement.... EBSA has limited legal authority to compel the Federal Retirement Thrift Investment Board to implement its recommendations, which includes enforcing its recommendations to improve the Thrift Savings Plan's cybersecurity posture."

Text of DOL OIG Report: EBSA Did Not Have the Ability to Protect the Estimated 79 Million Plan Participants in Self-Insured Health Plans from Improper Denials of Health Claims (PDF)

30 pages. "In 1975, EBSA exempted health plans having fewer than 100 participants from reporting requirements because the agency did not want to create an undue administrative burden. As a result of this exemption, EBSA has collected no information about denials of health claims from self-insured health plans that cover about 79 million participants. Moreover, Form 5500, EBSA's primary information collection tool, did not capture information on denials of health benefit claims. As a result, even the plans that were required to report to EBSA were not required to provide any information on their denials of health benefit claims. Despite this lack of primary knowledge about denials of health benefit claims in self-insured health plans, EBSA has conducted only limited reviews of these self-insured plans for compliance with external review requirements, and it has yet to issue final guidance for independent review organizations (IRO) that decide appeals of denied claims."