HR2958-119

What This Bill Does

The Balance the Scales Act changes ERISA enforcement procedures when the Department of Labor gives assistance that may be used in private litigation. Before providing adverse assistance to an individual, the Secretary of Labor must enter a written agreement describing the nature and scope of that assistance and provide a copy to any employer, plan sponsor, or fiduciary that may be directly and adversely affected. The bill defines adverse assistance as assistance or advice, including disclosure of information, directed specifically toward an attorney for potential use in a civil action under ERISA section 502(a). It requires an initial report within 60 days and annual reports to Congress on all agreements to provide adverse assistance. It also amends ERISA's findings to state a policy of promoting, encouraging, and facilitating voluntary establishment, maintenance, and contribution to private pension plans.

Who Benefits and How

Employers sponsoring ERISA plans benefit from advance notice when DOL assistance is directed toward a private attorney for potential litigation against them. ERISA plan sponsors and retirement plan fiduciaries benefit from written agreements that disclose the nature and scope of adverse assistance. Retirement plan service providers benefit when they may be directly and adversely affected by DOL-assisted litigation. Employers sponsoring retirement plans benefit from the added statutory policy favoring voluntary plan sponsorship and maintenance.

Who Bears the Burden and How

The Employee Benefits Security Administration must document adverse-assistance agreements, provide copies to affected parties, and produce reports to Congress. The Secretary of Labor must track covered assistance and report agreement details. Plaintiffs attorneys in ERISA litigation may face less informal access to DOL assistance because covered assistance must be disclosed through written agreements. Workers seeking ERISA lawsuit assistance may face a procedural hurdle if DOL support triggers notice to the plan-side parties.

Key Provisions

• Requires written agreements before the Secretary of Labor provides adverse assistance to an individual for potential ERISA litigation use.
• Requires copies of adverse-assistance agreements to be provided to affected employers, plan sponsors, or fiduciaries.
• Defines adverse assistance as DOL assistance or advice directed specifically toward an attorney for potential ERISA section 502(a) litigation.
• Requires an initial 60-day report and annual reports to Congress on adverse-assistance agreements.
• Adds ERISA policy language promoting voluntary establishment, maintenance, and contribution to private pension plans.