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

The Employee Retirement Income Security Act (ERISA) is a federal law passed in 1974 that sets standards for private and employee-sponsored retirement plans. It was created to protect workers and their retirement funds. ERISA requires employers sponsoring retirement plans to provide plan participants with certain rights and protections. ERISA requires employers to provide plan participants with certain information, including plan documents and financial statements. It also sets reporting requirements, and requires plans to be managed in a prudent manner. ERISA also sets standards for the types of retirement plans that can be offered. It regulates employer contributions to the plan, employee vesting requirements, and withdrawal of funds. It also requires minimum distributions upon retirement. In Rhode Island, employers must abide by ERISA when offering retirement plans. The Rhode Island Department of Labor and Training also provides information and resources for employers and employees on ERISA. In summary, ERISA is an important law that sets standards for private and employee-sponsored retirement plans. It provides plan participants with certain rights and protections, and requires employers to meet certain reporting requirements. Furthermore, it regulates how employers contribute to the plan, employee vesting requirements, and withdrawal of funds. Overall, ERISA is an important law that ensures the security of employee retirement funds.

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

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