Why EBSA enforcement priorities reach mid-sized plans

If you read yesterday’s post, or any of the recent coverage of EBSA’s enforcement priorities and the new wave of ERISA cases against large employer plans, and thought “that isn’t us,” read this one.

If you run benefits at a 50, 150, or 500-life employer, the fiduciary standard that applies to you is the same one that applies to a 50,000-life plan. The structure is not.

You need a record. The process scales to fit.

Three things that fit a small or mid-market plan, this quarter, without hiring anyone.

A renewal file. One folder. What you reviewed, who you talked to, what you decided, and why. If a regulator or an auditor ever asks what your process was, you have the answer.

A vendor compensation summary. One page. Every party that gets paid in connection with the plan, and how. Broker, GA, PBM, stop loss carrier, point solution. If you can’t see how a vendor gets paid, you can’t evaluate whether the arrangement is reasonable.

A renewal-to-renewal log. A few lines a quarter. What changed with the plan, the vendors, the claims experience. What you did about it. “Q2: dental renewed at a 4% increase, reviewed two alternative quotes, stayed with incumbent based on claims history and network access.” That’s the whole entry.

A good broker or advisor produces these. The sponsor reviews them, signs off, and keeps them.

That’s not a 50,000-life plan’s fiduciary calendar. It’s the small and mid-market version of one, and it does the same work.

This is the conversation I have most often with HR teams at this size. The CFO usually joins by the second meeting.