Introduction
The Department of Labor (DOL) has announced significant restructuring of its national enforcement projects for 2026. These changes represent a notable shift in compliance priorities that may directly affect federal employees and their benefit plans. Whether you work for the United States Postal Service, Veterans Administration, Department of Defense, Department of Labor, or serve as a Law Enforcement Officer under the Federal Employees Retirement System (FERS), it is essential to understand how these enforcement changes may impact your benefits.
This blog post provides factual information regarding the DOL’s 2026 enforcement priorities, outlines potential implications for federal employees, and identifies steps you may wish to consider. It is very important to do your own analysis and consult with qualified professionals before making any decisions regarding your benefit plans.
IMPORTANT NOTICE: The information contained in this blog post is for informational purposes only and does not constitute legal, financial, or investment advice. Federal Benefits Service does not assume liability for actions taken based on this content.
What Is Changing With DOL Enforcement in 2026
The Department of Labor has restructured its national enforcement projects to focus on new priority areas. This shift affects how benefit plans are monitored, audited, and enforced across all sectors: including federal employment.
New Priority Areas for 2026
The DOL has identified the following as primary enforcement focuses:
- Cybersecurity – Increased scrutiny of data protection measures within benefit plan administration
- Mental Health Parity – Enhanced enforcement of requirements for equivalent mental health and substance use disorder coverage
- Benefit Distributions – Closer examination of how benefits are distributed to participants
- Retirement Plan Asset Management – Greater oversight of how retirement assets are managed and protected
- Surprise Billing – Continued enforcement of regulations preventing unexpected medical charges
- Criminal Abuse of Benefit Plans – Aggressive investigation of fraudulent activities within benefit structures
What Has Been Removed From Priority Status
Notably, Employee Stock Ownership Plans (ESOPs), which had been a national enforcement priority for decades, have been removed from the priority list. Additionally, the DOL will lessen its focus on missing participants due to the implementation of the Retirement Savings Lost and Found database.
However, the DOL will continue aggressive enforcement against abusive multiple employer welfare arrangements (MEWAs).
Why These Changes Matter for Federal Employees
Federal employees participate in a complex system of benefit plans, including the Thrift Savings Plan (TSP), Federal Employees Health Benefits (FEHB), Federal Employees Group Life Insurance (FEGLI), and various supplemental coverage options. The DOL’s enforcement priorities may influence how these plans are administered and monitored.
Impact on Specific Federal Employee Groups
The following outlines potential implications based on employment category:
United States Postal Service (USPS) Employees:
- USPS employees rely heavily on FEHB for health coverage
- Mental health parity enforcement may result in enhanced mental health benefits or plan modifications
- Cybersecurity measures affecting benefit plan data may require additional verification processes
Veterans Administration (VA) Employees:
- VA employees often have unique benefit considerations due to potential dual coverage with VA healthcare
- Enforcement of benefit distributions may affect how supplemental benefits are processed
- Mental health parity regulations are particularly relevant given the VA’s focus on mental health services
Department of Defense (DOD) Employees:
- DOD civilian employees under FERS should monitor retirement plan asset management changes
- Cybersecurity enforcement is especially pertinent given DOD’s data sensitivity requirements
- Benefit distribution oversight may affect how military-civilian transition benefits are administered
Law Enforcement Officers:
- Law Enforcement Officers under FERS have special retirement provisions that may be subject to increased oversight
- Mental health parity enforcement is significant given the psychological demands of law enforcement work
- Retirement plan asset management scrutiny may affect how enhanced annuity calculations are processed
Department of Labor Employees:
- As employees of the enforcing agency, DOL workers should maintain heightened awareness of compliance standards
- Internal benefit plan administration may face additional scrutiny
- Cybersecurity and data protection measures may be prioritized within DOL systems
FERS Participants Generally:
- All FERS participants should understand that retirement plan asset management is now a priority area
- TSP contributions and distributions may be subject to enhanced oversight
- Benefit distribution timing and processes may face increased monitoring
Key Areas Requiring Attention
Cybersecurity and Data Protection
The DOL’s emphasis on cybersecurity vulnerabilities in benefit plan administration means that plan sponsors must ensure adequate data protection measures are in place. Federal employees should:
- Verify that personal information within benefit systems is properly secured
- Monitor benefit accounts for unauthorized access or unusual activity
- Report any suspected data breaches immediately to appropriate authorities
WARNING: Failure to protect personal benefit plan data may result in identity theft, unauthorized distributions, or loss of benefits. It is your responsibility to monitor your accounts and report discrepancies.
Mental Health Parity Compliance
The DOL will prioritize enforcement of mental health parity requirements. This means plans that fail to provide equivalent coverage for mental health and substance use disorder benefits compared to medical/surgical benefits face heightened investigation risk.
Federal employees should:
- Review their current FEHB plan’s mental health coverage provisions
- Compare mental health benefits to medical/surgical benefits within their plan
- Report potential parity violations to appropriate oversight bodies
Retirement Plan Asset Management
Enhanced oversight of retirement plan asset management directly affects TSP participants. Federal employees should:
- Regularly review TSP account statements for accuracy
- Understand how TSP funds are managed and allocated
- Maintain accurate beneficiary designations
- Keep contact information current with TSP administrators
Steps Federal Employees Should Consider Now
Given the DOL’s 2026 enforcement changes, federal employees may wish to consider the following actions:
- Conduct a Personal Benefits Audit
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- Review all current benefit elections
- Verify beneficiary designations are accurate and up-to-date
- Confirm contact information is current across all benefit systems
- Review Health Plan Coverage
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- Examine mental health and substance use disorder coverage
- Compare coverage levels to medical/surgical benefits
- Consider whether current coverage meets your needs
- Assess Cybersecurity Practices
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- Enable multi-factor authentication on benefit accounts where available
- Use strong, unique passwords for benefit plan access
- Monitor accounts regularly for unauthorized activity
- Understand Retirement Plan Details
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- Review TSP contribution strategies
- Verify understanding of distribution options
- Consider consulting with a qualified professional regarding retirement planning
- Document Everything
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- Maintain records of all benefit elections and changes
- Keep copies of plan documents and correspondence
- Document any issues or concerns for future reference
DO YOUR OWN RESEARCH: The steps outlined above are general considerations only. Your specific situation may require different actions. Always consult with qualified professionals before making decisions regarding your benefits.
Important Disclaimers
NO INVESTMENT ADVICE: Nothing in this blog post constitutes investment advice. Federal Benefits Service does not recommend or endorse any specific investment strategy, fund, or financial product.
NO LEGAL ADVICE: This content does not constitute legal advice. For questions regarding legal compliance or rights, consult with a qualified attorney.
LIMITATION OF LIABILITY: Federal Benefits Service assumes no responsibility for actions taken based on information provided in this blog post. All decisions regarding benefit plans are the sole responsibility of the individual.
ACCURACY OF INFORMATION: While efforts have been made to ensure accuracy, enforcement priorities and regulations may change. Verify all information with official DOL sources before taking action.
Next Steps
Understanding how the Department of Labor’s 2026 enforcement changes affect your federal benefit plan requires careful analysis of your individual circumstances. Federal employees are encouraged to take proactive steps to ensure their benefits are properly managed and compliant with current regulations.
If you require personalized guidance regarding your federal benefits, Federal Benefits Service offers comprehensive benefits review services. Our team can help you understand your options and navigate the complexities of federal benefit plans.
Set a meeting through our Benefits Review page to discuss your specific situation with a qualified representative.
For additional resources on federal employee benefits, including information on FEHB, HSA, and FEDVIP, retirement eligibility, and computing retirement benefits, visit Federal Benefits Service.
