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GAO-01-219R 1 (2000-12-04)

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       Accountability * Integrity * Reliability
United States General Accounting Office
Washington, DC 20548

          B-286882


          December 4, 2000

          The Honorable James M. Jeffords
          Chairman
          The Honorable Edward M. Kennedy
          Ranking Minority Member
          Committee on Health, Education, Labor, and Pensions
          United States Senate

          The Honorable William F. Go o dling
          Chairman
          The Honorable William Clay
          Ranking Minority Member
          Committee on Education and the Workforce
          House of Representatives

          Subject: Department of Labor, Pension and Welfare Benefits Administration:
                  Employee Retirement Income Security Act of 1974 Rules and Regulations
                  for Administration and Enforcement Claims Procedure

          Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a
          major rule promulgated by the Department of Labor (Department), Pension and
          Welfare Benefits Administration, entitled Employee Retirement Income Security Act
          of 1974; Rules and Regulations for Administration and Enforcement; Claims
          Procedure (RIN: 1210-AA61). We received the rule on November 21, 2000. It was
          published in the Federal Register as a final rule on November 21, 2000. 65 Fed. Reg.
          70246.

          The final rule revises the minimum requirements for benefit claims procedures of
          employee benefit plans covered by Title I of the Employee Retirement Income
          Security Act of 1974. The final rule establishes new standards for the processing of
          claims under group health plans and plans providing disability benefits and further
          clarifies existing standards for all employee benefit plans. The new standards are
          intended to ensure more timely benefit determinations, to improve access to
          information on which a benefit determination is made, and to assure that
          participants and beneficiaries will be afforded a full and fair review of denied claims.

          Enclosed is our assessment of the Department's compliance with the procedural
          steps required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the


GAO-01-219R

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