H.R.2958 - Balance the Scales Act (119th Congress)
Summary
H.R.2958, the "Balance the Scales Act," aims to amend 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 in potential civil actions under ERISA.
The bill requires the Secretary to enter into written agreements detailing the nature and scope of such assistance and to provide copies to potentially impacted employers, plan sponsors, or fiduciaries. The report to Congress must include copies of these agreements, dates, descriptions of assistance, logs of communications, and explanations of consistency with public policy.
Additionally, the bill declares it a policy of ERISA to promote the voluntary establishment and maintenance of pension plans, emphasizing their importance to the retirement security of employees and their dependents.
Expected Effects
The bill will increase transparency regarding the EBSA's collaboration with plaintiff attorneys in ERISA-related civil actions. It will also emphasize the importance of voluntary pension plans. This could lead to greater scrutiny of EBSA's activities and potentially influence the agency's approach to providing assistance in such cases.
Employers and plan sponsors will have more information about potential legal actions against them. The emphasis on voluntary pension plans may lead to policies that encourage their establishment and maintenance.
Potential Benefits
- Increased transparency in the Employee Benefit Security Administration's (EBSA) dealings with plaintiff attorneys.
- Provides employers and plan sponsors with more information about potential legal actions.
- Reinforces the importance of voluntary pension plans for employee retirement security.
- May lead to more balanced and fair ERISA enforcement.
- Could encourage greater voluntary sponsorship of employee benefit plans.
Most Benefited Areas:
Potential Disadvantages
- Increased administrative burden on the EBSA due to reporting requirements.
- Potential chilling effect on the EBSA's ability to provide necessary assistance to individuals in ERISA cases.
- May create an adversarial relationship between the EBSA and plaintiff attorneys.
- Could lead to delays in resolving ERISA disputes.
- Potential for increased litigation as employers and plan sponsors become more aware of potential legal actions.
Constitutional Alignment
The bill appears to align with the Constitution, particularly Article I, Section 8, which grants Congress the power to regulate commerce, including employee benefits. The reporting requirements imposed on the EBSA are within Congress's oversight authority. The emphasis on voluntary pension plans could be seen as promoting the general welfare, as mentioned in the Preamble.
However, concerns could arise if the reporting requirements unduly burden the EBSA's ability to enforce ERISA, potentially infringing on the executive branch's duty to execute the laws. The bill does not appear to infringe on any specific individual rights or liberties protected by the Bill of Rights.
Overall, the bill seems to fall within the scope of Congress's legislative powers and does not obviously contradict any constitutional principles.
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).