H.R. 2958: Balance the Scales Act

The bill titled "Balance the Scales Act" aims to amend the Employee Retirement Income Security Act of 1974 (ERISA) in several key ways regarding the reporting of adverse interest agreements associated with retirement plans. Below is a summary of its notable provisions:

Annual Reporting Requirements

The bill introduces an annual reporting requirement for the Secretary of Labor relating to agreements that involve providing "adverse assistance" to individuals under ERISA. Specifically:

• The Secretary must submit a report to Congress containing details about any agreements for adverse assistance within 60 days of the law's enactment and by December 31 of each subsequent year.
• This report must include:
  • A copy of each agreement, with certain information redacted.
  • The date each agreement was made.
  • A description of the nature and scope of assistance during the fiscal year.
  • Logs of verbal communications and meetings, including dates, participants, communication modes, and details about shared information.
  • An explanation of how each agreement aligns with public policy promoting employee benefit plans.

Definition of Adverse Assistance

Adverse assistance is defined as any advice or information directed specifically toward an attorney, which could be used in civil actions involving the retirement plans under ERISA. This means that if the Secretary offers assistance that could negatively impact a party's interests, it must be documented and reported effectively.

Collaboration with Plaintiff Attorneys

Before providing adverse assistance, the Secretary must:

• Enter into a written agreement with the individual receiving assistance, specifying the nature and scope of that assistance.
• Provide a copy of this agreement to any employer, plan sponsor, or fiduciary that might be adversely affected.

Promotion of Pension Plans

The bill also emphasizes the importance of voluntary pension plans. It states that Congress recognizes that the retirement security of many employees and their dependents is significantly connected to the establishment and maintenance of these pension plans. The bill declares a policy to promote and facilitate such voluntary plans.

Effective Date and Existing Agreements

The amendments take effect for any adverse assistance provided after the law is enacted. However, existing agreements are subject to certain provisions that allow the Secretary to meet new requirements within 60 days of the bill’s enactment.

Relevant Companies

None found