Tuesday, June 19, 2012

Pension & Welfare Benefit Administration

By Joyce Rouse

In 1986, the United States upgraded the Pension and Welfare Benefits program to sub-cabinet status and renamed it the Pension and Welfare Benefits Administration (PWBA). In 2003, it became the Employee Benefits Security Administration (EBSA).

A division of the U.S. Department of Labor, Employee Benefits Security Administration oversees and enforces Title I of the Employee Retirement Income Security Act of 1974 (ERISA). Title I deals with reporting and complying with ERISA standards.

ERISA requires employers to create and manage employee benefits programs with the best interests of employees the highest priority. Companies whose employee benefit programs meet ERISA standards are eligible for favorable IRS tax credits. Those that do not comply face aggressive EBSA enforcement.

Owners, board members and managers who influence employee benefit plans potentially have personal liability for ERISA violations. EBSA is vigilant in investigating suspected violations. In 2009, it recovered $1.3 billion related to mishandling of pension funds, health care programs and 401(k) retirement plans. Using employee benefit funds to offset business losses is never permitted.


http://www.lenderva.com

No comments:

Post a Comment