EBSA Head Lisa Gomez Talks Broadening Access to Retirement Benefits

Lisa Gomez was new to government when she joined the administration of President Joe Biden slightly more than one year ago. Following nearly three decades in private practice, most recently as a partner in New York law firm Cohen, Weiss and Simon LLP. Gomez was confirmed as the assistant Secretary of Labor in charge of the Employee Benefits Security Administration in September 2022.

Her first year in government included the December passage of the Secure 2.0 Act of 2022, which set out a long list of rulemaking projects for her office. In a conversation with PLANSPONSOR in late October of this year, she explains how EBSA and the DOL are approaching that work and other priorities:

PLANSPONSOR: The SECURE 2.0 Act of 2022 included several provisions to broaden access to retirement benefits, including a retirement account lost and found database. How are EBSA and the DOL prioritizing projects created by the law?

GOMEZ: We are definitely working really hard with a goal toward meeting all those various deadlines. I think over the next couple of months, you will definitely be seeing a lot coming out from us between now and the end of the year in keeping with the deadlines.

We are [currently also] reviewing our interpretive bulletin on pension risk transfers. We are [also] implementing certain provisions of the WORK Act [Worker Ownership, Readiness, and Knowledge Act, Section 346 of SECURE 2.0] that relate to worker ownership and valuation of employer stock for employee stock ownership plans, and there are a number of different deadlines within SECURE [2.0] that call for us to be delivering something by the end of this year.

PLANSPONSOR: How is the department staying on track to implement provisions of the SECURE 2.0 Act of 2022 on time?

GOMEZ: We are on track. Not everything is completely within our control. We are definitely hoping to get things out by the deadlines—or as close as possible—and we have been working hard toward that.   

One thing, being new to government, that I did not fully appreciate was all of the steps that it takes to [implement a bill], because I watched “Schoolhouse Rock” as a kid, but they do not explain all of the different pieces [of legislation].

PLANSPONSOR: Data shows persistent retirement savings gaps along both racial and gender lines. How is government policy addressing retirement savings and access disparities?

GOMEZ: At the Department of Labor, we are very focused on trying to understand what the source of these disparities is and how we can try to address them so that retirement benefits are more equitable and so that everyone has a chance at a secure retirement and to retire with dignity.

In the Biden administration, the president is always talking about building up the economy from the bottom up and the middle out, but too often people think about retirement as a luxury that not everyone has access to. With SECURE 2.0, that is a step in the right direction. We are constantly thinking about equity in retirement, and that is one step to have it be top of mind, to be thinking about with respect to any of these policies that we are implementing: How does it affect underserved communities? And how can we reach out to them?

But so much of it is employment-based, and [this is] driving where people land on the spectrum of having access to retirement benefits.

It relates to the occupation that one is in, because 70% of private sector workers had access to retirement benefits in 2023, but [disparities of access exist] when you look at different occupations. [Among] people who are working in service occupations, only 43% in the private sector have access [to retirement benefits], and minorities are usually overrepresented in those kinds of jobs. Looking at the access issue, there is clearly still a huge disparity, and then even for people who do have the ability to be able to participate in a retirement plan through their job, the level of participation varies greatly by race.

PLANSPONSOR: What can plan sponsors do to support building greater equity regarding access to retirement benefits?

GOMEZ: One thing that employers can do is—first of all—if they are not yet offering a retirement plan, think about why? What do they need and how can the government support them with information? There is support under these various laws to give incentives to be able to offer [retirement benefits], but from an employer standpoint, [plan sponsors] can think about: Are we offering a retirement plan? If not, why not?

We have benefits advisers across the country, who are available at our toll-free number—866-444-3272—or by sending an email, and those folks are great at just pointing you in the right direction.

There is a lot of information on the website regarding planning, both from a worker standpoint and from an employer standpoint. I just want to get on the mountaintops and let people know that there’s information out there that can be helpful to you.