The Government Accountability Office (GAO) recently released a report highlighting the challenges faced by the Department of Labor's Employee Benefits Security Administration (EBSA).
According to the report, EBSA is grappling with an increased workload and responsibilities, yet its resources have not grown correspondingly. The GAO recommends that the Secretary of Labor instruct EBSA to develop a more systematic and documented approach to decision-making and resource allocation to effectively manage its expanding oversight role.
The GAO found that from 2013 to 2021, EBSA's budget remained essentially flat in nominal terms but decreased when adjusted for inflation. This budget stagnation, combined with rising operational costs, has led EBSA to increasingly rely on supplemental funding. Meanwhile, new legislative responsibilities have been added to EBSA’s mandate, including requirements from the Patient Protection and Affordable Care Act, the Families First Coronavirus Response Act, the CARES Act, and the No Surprises Act of 2021. Retirement security legislation, like the SECURE Act of 2019 and SECURE 2.0 passed in December, further expanded EBSA's obligations.
Despite these increasing demands, EBSA has experienced a significant reduction in staff. The agency reported a decrease of over 180 full-time employees in 2021 from its peak of approximately 980 in 2013. Additionally, the GAO observed that EBSA lacks a clear and systematic process for reallocating resources in response to these changes.
EBSA is tasked with overseeing approximately 2.8 million health plans, 765,000 private retirement plans, and 619,000 other welfare benefit plans. These plans collectively cover about 153 million workers, retirees, and their families.
Rep. Bobby Scott, D-Va., a ranking member on the House Education and the Workforce Committee, who requested the GAO report, emphasized the significance of this issue. He noted that as EBSA's oversight responsibilities expand to address bipartisan priorities, it is crucial to provide the agency with the necessary resources. This investment, he argues, is vital for ensuring accessible and affordable health care coverage and secure retirement benefits.
