Authored By: Patrick Lowry
At The ESOP Association’s National 2026 Conference, Daniel Aronowitz, head of the Employee Benefits Security Administration (EBSA), outlined the agency’s evolving approach to ERISA enforcement and oversight. His comments signaled a potentially more balanced regulatory posture, including reduced second-guessing of responsible fiduciaries and a focus on fair and even-handed enforcement efforts.
One particularly informative session, “Under the Microscope – Valuation Issues in IRS and DOL Investigations,” featured presentations from Emily Rickard and Michael Graham. The session focused on practical ways organizations can prepare for potential DOL and IRS audits, common investigation triggers, and best practices for maintaining defensible fiduciary and valuation processes.
4 Key Takeaways from the Session
1
Organization and consistency remain critical
Presenters emphasized that maintaining organized, consistent, and readily accessible documentation is one of the most effective ways to achieve better outcomes during DOL or IRS scrutiny. Based on their case experience, making the reviewing agent’s job easier can significantly improve the efficiency and tone of an investigation.
2
Core documents should be audit-ready at all times
Key documents that should be well organized and easily accessible include written plan and trust documents, annual Form 5500 filings, auditor reports, administrative policy documents, participant benefit statements, and engagement agreements with valuation and advisory professionals.
3
Several common audit triggers continue to draw regulatory attention
Potential investigation triggers discussed during the session included participant complaints, delinquent regulatory filings, late employer contributions, and failure to maintain appropriate fidelity bond coverage.
4
Trustee diligence and valuation oversight remain under
The presenters also noted that regulators continue to focus heavily on trustee diligence, particularly surrounding the valuation firm selection process, documentation supporting valuation conclusions, and evidence demonstrating a prudent fiduciary review process.
Looking Ahead
Although the conference reflected a potentially more constructive regulatory tone from EBSA leadership, the importance of maintaining strong fiduciary governance practices has not diminished. ESOP companies and fiduciaries should continue prioritizing robust documentation, thoughtful valuation processes, and proactive compliance measures to help mitigate regulatory risk and support defensible decision-making.
As regulatory expectations continue to evolve, organizations that maintain disciplined processes and strong advisor coordination will be best positioned to navigate future DOL and IRS scrutiny successfully.
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