New Transparency Act Forces Federal Investigators to Report on Employee Benefit Cases, Setting a 36-Month Deadline

This bill, the EBSA Investigations Transparency Act, is pretty straightforward: it aims to put a spotlight on how long federal investigations into employee benefit plans actually take. Specifically, it requires the Secretary of Labor to send an annual report to Congress detailing every investigation handled by the Employee Benefit Security Administration (EBSA) under Section 504(a) of the Employee Retirement Income Security Act (ERISA).

Think of this as a major accountability check on the folks tasked with protecting your 401(k) and health plan. Starting next year, the Department of Labor has to track and report key dates for every case: which office started it, the opening date, and most importantly, the exact day they first asked the target for documents. That last date is the starting gun for a new, crucial deadline.

The 36-Month Clock for Your Retirement

This is the part that matters most for anyone whose retirement or health plan is tied up in a federal investigation. The bill sets a clear expectation: EBSA investigations should wrap up within 36 months—three years—of that initial document request. If an investigation drags on past that point, the Secretary must explain to Congress why the case is delayed and provide a new estimated completion date. This is a big deal because when an employer or plan sponsor is under investigation, it can create uncertainty for plan participants and beneficiaries, sometimes freezing assets or delaying critical decisions. This new rule means no more letting complex cases quietly gather dust.

Privacy Protection Built In

While the bill demands transparency for Congress, it also includes a critical privacy safeguard for the people and companies involved. The annual report absolutely cannot include any identifying information—no names of plan sponsors, fiduciaries, service providers, or individual employees/participants. The goal is to track the efficiency of the regulatory process, not to publicly shame private parties who may or may not be found at fault. For a small business owner who might be the target of an EBSA compliance review, this privacy shield is essential, allowing them to cooperate without fear of public exposure before a finding is made.

When is a Case Actually 'Over'?

The legislation also clears up a technical but crucial point: when an investigation is officially considered 'concluded' for reporting purposes. It’s not over until the Department of Labor formally stops claiming investigative authority or ends its compliance monitoring, whichever happens later. Both actions must be documented in a closing letter sent to the entity under review (SEC. 2(c)). This detail prevents investigators from claiming a case is closed while still doing 'informal' monitoring, ensuring the reported timelines are accurate. This bill won't fix every problem with employee benefits, but it mandates the kind of clear data tracking Congress needs to oversee the process. For the average person, it means faster potential resolution when their benefits plan runs into trouble.