What is the Employee Retirement Income Security Act?

The Employee Retirement Income Security Act (ERISA) of 1974 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 covers both retirement and health plans and provides participants with certain basic rights, such as the right to receive information about their plan, to sue for benefits and breaches of fiduciary duty, and to receive a timely payment of benefits. In Maryland, ERISA applies to employers who have 15 or more employees for each working day during 20 or more calendar weeks in the current or preceding calendar year. This includes part time workers and can include other members of the same group such as parents, brothers or sisters. It applies to businesses of all sizes, from small businesses to large corporations, and to all types of benefits plans, including 401(k)s, pensions, health plans, and more. ERISA also imposes specific legal requirements on employers who offer benefits plans, such as setting minimum standards for the disclosure of plan information and the administration and funding of plans. ERISA requires employers to act prudently, meaning that they must act in the best interest of participants when making decisions about the plan. ERISA also protects participants from conflicts of interest and protects their benefits from mismanagement. In addition, ERISA requires plan administrators to notify participants of any changes to the plan and to provide participants with a summary plan description.

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What is the Employee Retirement Income Security Act?

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