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

The Employee Retirement Income Security Act (ERISA) is a federal law that was passed in 1974 and is administered by the US Department of Labor. ERISA provides important protections for employees who participate in pension and other retirement plans. It sets standards that companies must meet when establishing such plans, as well as rules that employers must adhere to when managing and funding them. ERISA ensures that employees have the right to know how a retirement plan is funded and what benefits they will receive. It also provides rules for the management of investment options within a plan, and it outlines how claims for benefits should be handled. Additionally, it sets reporting requirements for companies to file with the Department of Labor to ensure that the plans are managed according to legal standards. ERISA is essential for providing a layer of security for employees for their retirement years. It contains provisions to help protect employees from losing their retirement savings due to poor plan management or investments. It also sets out rules for when benefit payments should be made, and it even provides for certain circumstances where employees may have the right to sue their employer if they feel they have been wronged.

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

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