Balance the Scales Act
- Bill Number
- H.R. 2958
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Labor and Employment
- Status
- Introduced
- Latest Action
- 2026-02-20: Placed on the Union Calendar, Calendar No. 430.
- Last Updated
- 2026-06-11T23:26:40Z
AI-Generated Summary
Purpose of the Legislation
The "Balance the Scales Act" (H.R. 2958) aims to increase transparency and accountability in how the U.S. Department of Labor's Employee Benefits Security Administration (EBSA) provides assistance to individuals or attorneys that could harm employee benefit plans, such as pensions. It seeks to protect the voluntary creation and maintenance of these plans by requiring formal agreements and congressional reporting on such assistance, while reinforcing the public policy of encouraging employer-sponsored retirement benefits.
Key Provisions
- Definition of "Adverse Assistance": This refers to any help or advice from the Secretary of Labor (acting through EBSA), including sharing information, that is specifically aimed at supporting an attorney's preparation for a civil lawsuit against an employee benefit plan under ERISA's enforcement section (Section 502(a)).
- Requirements for Providing Assistance:
- Before offering adverse assistance to an individual, the Secretary must enter a written agreement outlining the details of the help.
- A copy of this agreement must be shared with any employer, plan sponsor (the entity responsible for the plan), or fiduciary (a person or organization managing plan assets) that could be negatively affected.
- Annual Reporting to Congress:
- Starting 60 days after enactment and annually by December 31, the Secretary must submit a report on all active agreements from the previous fiscal year.
- Each report includes: a redacted copy of the agreement; the agreement's start date; detailed logs of shared information (including sources, types, amounts, and dates), verbal communications (dates, participants, methods, and content), and meetings (dates, attendees, formats, purposes, and shared information); and an explanation of how the assistance aligns with policies promoting voluntary employee benefit plans.
- Reports identify the main parties involved but redact details that could reveal other individuals or entities (e.g., potential defendants like employers or service providers).
- Policy Statement on Pension Plans: Adds a congressional finding to ERISA emphasizing that private pension plans are vital for workers' retirement security and declares it a policy goal to encourage their voluntary establishment, maintenance, and funding by employers.
Significant Changes to Existing Law
- Amends Section 504 of ERISA (29 U.S.C. 1134) by adding a new subsection (f) that introduces mandatory written agreements and notifications for adverse assistance, which were not previously required.
- Adds a new subsection (d) to Section 2 of ERISA (29 U.S.C. 1001), explicitly stating a policy to promote voluntary pension plans, building on ERISA's original goals but with stronger emphasis on protecting plan sponsorship from litigation risks.
- Applies to all adverse assistance provided after enactment; existing arrangements can comply retroactively if formalized within 60 days.
Potential Impacts
- On Government Agencies: The EBSA and Department of Labor face increased administrative burdens from drafting agreements, maintaining detailed logs, and preparing annual reports, potentially requiring more resources for compliance and oversight.
- On Citizens: Employees and retirees may indirectly benefit from stronger protections for voluntary pension plans, which could encourage more employers to offer benefits and enhance long-term retirement security. However, it might limit access to government information for individuals pursuing claims against plans.
- On International Relations: No direct impacts, as the bill focuses on domestic U.S. employee benefit regulations.
- Broader Effects: Could reduce frivolous or aggressive lawsuits against plans by adding transparency, but might slow enforcement actions or information sharing in legitimate cases, affecting how disputes over benefits are resolved.
Main Stakeholders Affected
- Employee Benefits Security Administration (EBSA) and Secretary of Labor: Directly responsible for implementing agreements and reports.
- Employers, Plan Sponsors, and Fiduciaries: Receive notifications of potential adverse assistance, gaining early awareness to protect their interests.
- Plaintiff Attorneys and Individuals: Must formalize requests for government help, which could streamline or complicate access to information for lawsuits.
- Congress: Gains oversight through annual reports to monitor EBSA activities.
- Employees and Retirees: Indirectly affected as beneficiaries of stable pension plans, with potential improvements in plan availability but possible hurdles in holding plans accountable.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: Enhances ERISA's framework by balancing enforcement (which allows civil suits for benefit violations) with safeguards against misuse of government resources in litigation. The redaction requirements protect privacy under laws like the Privacy Act, but could raise questions about transparency in public reporting.
- Constitutional Implications: None apparent; the bill aligns with Congress's authority to regulate commerce and employee benefits under the Commerce Clause, without infringing on free speech or due process.
- Political Implications: Reinforces a pro-business stance by prioritizing voluntary plan sponsorship, potentially reducing regulatory burdens on employers amid concerns over "litigation risks" in pension management. It may spark debate on whether it unduly favors defendants over workers' rights in benefit disputes.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Rulli, Michael A. [R-OH-6]
Cosponsors (1)
Rep. McClain, Lisa C. [R-MI-9]
Recent Actions
- 2026-02-20: Placed on the Union Calendar, Calendar No. 430.
- 2026-02-20: Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-504.
- 2026-02-20: Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-504.
- 2025-09-17: Ordered to be Reported (Amended) by the Yeas and Nays: 19 - 16.
- 2025-09-17: Committee Consideration and Mark-up Session Held
- 2025-04-17: Referred to the House Committee on Education and Workforce.
- 2025-04-17: Introduced in House
- 2025-04-17: Introduced in House
Bill Versions
- Balance the Scales Act — issued 2025-04-17 — PDF (6 pages)
- Balance the Scales Act — issued 2026-02-20 — PDF (8 pages)