6/16/25 EBSA Confirmation Hearings Provide Important Health/Retirement Plan Compliance Roadmap for Next Two Years
June 16, 2025
By Jeff Robertson & Iris Tilley
Recent confirmation hearings related to the potential head of the Employee Benefits Security Administration (“EBSA”) provide a roadmap to the likely issues facing retirement plans over the next few years.
During the hearings, the presumptive nominee was asked for the regulatory priorities if confirmed and responded with an overall philosophy that plans and fiduciaries should be allowed to operate retirement plans within the fiduciary guidelines. Specifically the presumptive nominee identified the following priorities:
De-Regulating the Enforcement of Employee Stock Ownership Plans (“ESOP”). These comments were related primarily to government enforcement and retroactive consideration of issues particularly relating to valuation. It appears that the next few years will be favorable to those companies considering an ESOP as a liquidity event.
“Modernizing” 401(k) investments. Providing for lifetime income options, crypto currencies, private equity and alternative investments from a strict mutual fund lineup operated in asset/risk classes.
Cybersecurity. There continues to be an increased focus on plan-level cybersecurity procedures. We often come across plans whose fiduciaries have never affirmatively asked about the cybersecurity procedures.
Plan forfeitures and missing participants. While the current administration seems to favor a lighter audit and enforcement approach, the issues of plan forfeitures, suspense accounts and locating missing participants will continue to be a priority.
Expanded retirement and health plan access. We believe the Trump administration will continue to work to expand access to employer-sponsored retirement and health plans, including to independent contractors.
One thing remains very clear: operating retirement and health plans with regular documented oversight is the best protection against compliance concerns, litigation and governmental investigation which defaults to “did the fiduciaries operate a prudent procedure in decisions” standard.
Your employee benefits lawyers at Barran Liebman are available to help you establish and operate a regular document procedure to limit the risk related to your retirement and health plans.
The Barran Liebman Employee Benefits Group assists employers with retirement and health plans. Please contact Jeff Robertson at 503-276-2140 or jrobertson@barran.com, or Iris Tilley at 503-276-2155 or itilley@barran.com, or your regular attorney at Barran Liebman if you have any questions.