What is the Employee Retirement Income Security Act?

The Employee Retirement Income Security Act (ERISA) is a law passed by the US Congress in 1974 that sets standards for most voluntarily established retirement plans. This act establishes guidelines and rules for companies that offer retirement plans and provides participants with the rights to certain benefits from these plans. ERISA also regulates how these plans are funded and provides guidelines for administering them. Under ERISA, employers are required to provide certain information to plan participants about the plan’s benefits and how the plan is funded. Furthermore, employers must follow the funding guidelines set out in ERISA, which generally requires employers to fund the plan with adequate assets. ERISA also requires that companies create a plan document to provide details of the plan, which participants must be given the opportunity to review. The law also ensures that employees are not deprived of the benefits they have earned. ERISA requires employers to communicate with employees about important information related to the plan, such as changes in the plan’s investment options or changes to the formula for calculating benefits. Additionally, the law requires employers to provide employees with assistance if they need help understanding the plan or their rights under it. ERISA is an important law for New Hampshire residents who are participating in a retirement plan offered by their employer. This law helps ensure that individuals are receiving the benefits they are entitled to and that their benefits are secure.

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What is the Employee Retirement Income Security Act?

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