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

The Employee Retirement Income Security Act (ERISA) 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 was created in 1974 in order to protect employees’ retirement benefits by establishing standards of conduct for employers and plan administrators. ERISA requires employers to provide participants with information about their plan including important information such as benefits, vesting, and fund performance. In addition, it requires employers to establish a grievance and appeals process for participants to follow when they have a problem with their plan or benefits. In California, ERISA is enforced by the Department of Insurance, which requires companies to provide secure benefits for those who choose to join their plans. Employers must also properly fund the plan in order to ensure that participants’ benefits will be paid out in full when they retire. ERISA also requires employers to provide certain protections to plan participants such as providing fiduciary responsibility, limiting plan assets from being used for other purposes, and making sure that reasonable fees and expenses are not charged. The law also requires employers to provide financial disclosures to participants on an annual basis. ERISA has helped to ensure that employers provide a secure retirement for employees in California and across the country. It has given workers peace of mind knowing that their retirement benefits are safe and secure.

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

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