Balance the Scales Act
Introduced April 17, 2025 · Last action February 20, 2026
Plain English Summary
This bill requires the Department of Labor to enter into written agreements with attorneys before sharing information that could be used against employers in pension plan lawsuits, and to report annually to Congress on all such agreements. It also adds a congressional declaration that private pension plans are important to employees' retirement security and that the law should promote their voluntary establishment.
Who benefits
Employers, pension plan sponsors, and pension plan fiduaries who are defendants or potential defendants in ERISA litigation; their defense attorneys and litigation consultants who gain advance notice of Department of Labor cooperation with plaintiff attorneys.
Who pays / loses
Employees and retirees covered by pension plans, and their attorneys, who will have reduced access to Department of Labor information and assistance in civil actions alleging pension plan breaches or violations; plaintiff-side ERISA litigators who will face administrative obstacles and delay in obtaining government information.
Funding & Lobbying Interests
Employee Benefit Plan sponsors, industry associations representing plan sponsors (such as the American Benefits Council, ERISA Industry Committee, and Chamber of Commerce), and corporate law firms specializing in pension and labor litigation have strong financial interest in reducing litigation against employers. Sponsor Rep. Rulli's campaign contributions would reflect which industries and firms contributed to his election; absent specific finance data, the bill's provisions directly benefit large employers, insurance companies, and corporate fiduciaries managing pension plans.
Political Impact
Affected Groups
Approximately 51 million private sector workers covered by defined benefit and defined contribution pension plans (per Department of Labor data) face potential reduction in government agency assistance when pursuing claims of plan mismanagement or breach. Small numbers of Plan Sponsors (approximately 650,000 plans) and their executives gain procedural protection in litigation. Employees in plans with fiduciary duty breaches or misappropriated assets face higher barriers to obtaining Department of Labor investigative support.
Political Subtext
Proponents argue that Department of Labor cooperation with plaintiff attorneys chills voluntary pension plan sponsorship and establishment, and that the bill promotes pension availability by reducing employer litigation risk and costs. Critics argue the bill obstructs federal enforcement of workers' rights under ERISA, creates a transparency burden on the Department of Labor while shielding employer conduct from government scrutiny, favors corporate defendants over workers seeking to recover mismanaged retirement funds, and contradicts the Department of Labor's fiduciary mandate to protect plan participants. Non-partisan evidence on whether litigation risk measurably deters pension sponsorship is limited; however, Department of Labor information-sharing with private attorneys is a normal practice in federal enforcement and civil rights contexts (comparable to DOJ assistance in discrimination cases). The bill's requirement for employer advance notice of government cooperation with plaintiffs is without precedent in federal enforcement practice.
Real-World Stakes
If this passes, employees alleging pension mismanagement will lose direct Department of Labor assistance in discovery, document disclosure, and investigative cooperation that currently occurs without notice to defendants. Employers will gain litigation advantage through early notification of government cooperation with plaintiffs, allowing advance preparation and possible settlement negotiation. This reverses the typical federal enforcement model: compare to Securities and Exchange Commission cooperation with whistleblowers (Dodd-Frank Act 2010, codified 15 U.S.C. § 78u-6), which explicitly protects government assistance to private litigants without defendant notice. The bill's declaration promoting voluntary pension sponsorship is hortatory only but signals Congressional intent to prioritize plan availability over participant protection—a shift from ERISA's original 1974 balance, which mandated strict fiduciary duties and robust enforcement. If enacted during a period of documented pension underfunding and rising retiree litigation (2020s), the bill would disproportionately affect participants in underfunded plans who rely on government enforcement to recover assets.
Sponsor
Sponsor information not available.
Vote Record
No recorded votes.
Campaign Finance — Primary Sponsor
No campaign finance data available yet.
501(c)(4) disclosure: Contributions from 501(c)(4) "dark money" organizations are not required to be publicly disclosed and are not reflected in the figures above. Data sourced from FEC public disclosure filings.
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