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

The Employee Retirement Income Security Act (ERISA) is a Federal law that sets minimum standards and requirements for most private-sector employee benefit plans. It was enacted in 1974 to help safeguard the retirement, health care, and other benefits of employees who participate in employee benefit plans. Employers are required to adhere to certain standards regarding administration and disclosure of these plans. ERISA regulates the financial soundness of private-sector employee benefit plans, with an aim to protect the interests of plan participants while also helping employers keep plans viable. The rules apply to both employers who offer pension and other retirement benefits, as well as to employers who provide group health insurance coverage, disability, death or other employee benefits. ERISA requires covered employers and plan administrators to disclose to plan participants information about their benefits, funding, and how the plan is operated. Epmloyers and administrators must also follow specific guidelines related to the selection and use of investment options, the use of participant contributions, and the keeping of records. ERISA is enforced by the Department of Labor at the Federal level, and is overseen by the Minnesota Department of Commerce. While the state does not enforce ERISA, the Department of Commerce provides information and resources to employers and employees regarding ERISA compliance.

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

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