Balance the Scales Act
Summary
The Balance the Scales Act amends the Employee Retirement Income Security Act (ERISA) of 1974. It mandates the Employee Benefit Security Administration (EBSA) to submit an annual report to Congress regarding adverse interest agreements. These agreements involve the Secretary of Labor providing assistance to individuals, potentially for use in civil actions under ERISA.
Expected Effects
The act will increase transparency by requiring the EBSA to disclose details of its collaborations with plaintiff attorneys. This includes the nature and scope of assistance provided, information shared, and communications logs. The act also aims to promote the voluntary sponsorship of employee benefit plans.
Potential Benefits
- Increased transparency in the EBSA's dealings with plaintiff attorneys.
- Potential for greater accountability in how the EBSA uses its resources.
- May encourage employers to maintain and contribute to pension plans by addressing concerns about adverse actions.
- Provides Congress with detailed information to oversee the EBSA's activities.
- Clarifies the policy of promoting voluntary pension plans.
Potential Disadvantages
- Increased administrative burden on the EBSA to prepare the annual report.
- Potential chilling effect on the EBSA's ability to assist individuals in ERISA-related disputes.
- May lead to increased scrutiny and potential legal challenges from employers and plan sponsors.
- The definition of 'adverse assistance' may be subject to interpretation and dispute.
- Could disproportionately benefit employers and plan sponsors at the expense of employee rights.
Constitutional Alignment
The act appears to align with the constitutional role of Congress in overseeing government agencies and ensuring accountability. Article I, Section 8 grants Congress the power to make laws necessary and proper for carrying out its enumerated powers, which includes regulating commerce and providing for the general welfare. The reporting requirements imposed by the act fall within this scope.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).