Balance the Scales Act

Summary

Requires the Labor Department to sign a written agreement and notify affected employers, plan sponsors, or fiduciaries before giving certain kinds of assistance or advice to an attorney that could be used in private ERISA litigation, and to report those agreements to Congress soon after enactment and annually thereafter. Also adds a congressional policy statement affirming that private pension plans are important to retirement security and that voluntary establishment and maintenance of such plans should be promoted.

• Requires the Secretary of Labor to enter a written agreement and notify affected employers/plan fiduciaries before providing assistance to an attorney that could be used in private ERISA litigation.
• Defines "adverse assistance" as assistance or advice directed specifically to an attorney for potential use in an ERISA civil action, including disclosure of information.
• Directs the Secretary to report to Congress on all such agreements, with the first report due within 60 days of enactment and annual reports thereafter by December 31.
• Reports must include copies of agreements (with allowable redactions), dates, detailed descriptions of assistance (including communications logs), and identification of parties with specified exclusions.
• Grandfathers existing arrangements if the Department completes the written agreement and provides notice to affected parties within 60 days of enactment.
• Adds a statutory policy declaration that private pension plans are integral to retirement security and that voluntary plan sponsorship should be promoted.
• Imposes process, notice, and transparency requirements but does not change ERISA substantive benefit, funding, or tax rules.
• Likely increases administrative burden on the Department of Labor and could affect the timing or willingness of the Department to assist plaintiffs' attorneys.