What is the Employment Retirement Income Security Act (ERISA)?

The Employment Retirement Income Security Act (ERISA) is a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans. ERISA was enacted in 1974 to protect employees' retirement benefits and ensure their financial security during retirement.

Key Aspects of ERISA

ERISA covers various aspects related to retirement benefits, including pension plans, retirement savings plans, and health insurance plans. It establishes rules and regulations for employers who offer these benefits to their employees to ensure compliance and protect employees' rights.

Employee Protections

ERISA aims to protect employees by ensuring that their retirement plans are managed in their best interests. It requires plan sponsors to provide participants with important information about the plan, including features, funding, and investments.

Compliance and Regulations

ERISA sets strict guidelines for retirement plan sponsors, administrators, and fiduciaries to follow. It mandates reporting and disclosure requirements, funding standards, vesting rules, and fiduciary responsibilities to safeguard employees' retirement funds.

Overall, ERISA plays a crucial role in safeguarding employees' retirement benefits and ensuring that they have financial security during their retirement years. Compliance with ERISA regulations is essential for both employers and employees to protect their retirement investment and benefits.