Certified Plan Sponsor Professional (CPSP) Practice Exam

Which body is responsible for enforcing ERISA regulations regarding employee contributions?

1. Department of Labor (DOL)

2. Internal Revenue Service (IRS)

3. Employee Benefits Security Administration (EBSA)

4. Federal Trade Commission (FTC)

The correct answer is: Department of Labor (DOL)

The Department of Labor (DOL) plays a crucial role in enforcing the Employee Retirement Income Security Act (ERISA) regulations, particularly those that pertain to employee contributions. The DOL is responsible for overseeing the enforcement of the fiduciary responsibilities imposed on plan sponsors, ensuring that they act in the best interests of plan participants and beneficiaries. This includes monitoring how employee contributions are managed and invested within retirement plans. The DOL's enforcement actions can include investigating potential violations and ensuring compliance with reporting and disclosure requirements mandated by ERISA. While other bodies like the Internal Revenue Service (IRS) are involved in administering certain tax aspects of retirement plans and ensuring that plans comply with tax-related statutes, the DOL's focus directly pertains to the enforcement of ERISA provisions related specifically to employee contributions and plan fiduciaries. The Employee Benefits Security Administration (EBSA) is actually a part of the Department of Labor and plays a significant role in enforcing ERISA as well, but the broader designation of the DOL encapsulates the full scope of ERISA enforcement. The Federal Trade Commission (FTC) does not have a role in the enforcement of ERISA regulations concerning employee contributions, as its jurisdiction primarily involves consumer protection and antitrust laws.