PWBA Enforcement Plan Targets DC Plans (Posted April 30, 2001) Technical Tip 11: The following question and answer were from the DOL Q&A Session at the 2000 ASPPA Annual Conference: In the PWBA’s Strategic Enforcement Plan, it states that defined contribution plans will be a primary target for enforcement activity. Why is that? What are the specific types of violations that concern the PWBA? DOL Response: Defined contribution plans are a primary target for enforcement activity by the Department because there’s a higher risk of loss to the participants in a defined contribution plan. These plans are not covered by an insurance program, such as the Pension Benefit Guaranty Corporation. Further, because these plans do not provide any set level of benefits, issues of investment risk and fees paid with plan assets are more critical than with defined benefit plans. Some of the specific issues that concern the PWBA include late deposit of 401(k) deferrals, valuation of plan assets and diversification of plan investments. Caveat: The answer was drafted by Fred Reish and Brad Huss, the program moderators, based on their understandings of discussions with four senior officials of the Pension and Welfare Benefits Administration (PWBA) of the U.S. DOL. As a result, it does not represent a formal or binding position statement by the PWBA. View all Tips © 2012 Reish Luftman Reicher & Cohen, a Professional Corporation Important notice: Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner's situation. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of your situation.