What is ERISA?
The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for pension plans in private industry. For example, if your employer maintains a pension plan, ERISA specifies when you must be allowed to become a participant, how long you have to work before you have a nonforfeitable interest in your pension, how long you can be away from your job before it might affect your benefit, and whether your spouse has a right to part of your pension in the event of your death. Most of the provisions of ERISA are effective for plan years beginning on or after January 1, 1975. ERISA does not require any employer to establish a pension plan. It only requires that those who establish plans must meet certain minimum standards. The law generally does not specify how much money a participant must be paid as a benefit.
ERISA stands for Employee Retirement Income Security Act of 1974. ERISA is a federal law that covers pension, health and disability insurance plans and governs your rights to certain benefits. ERISA establishes minimum standards for such plans, including standards of conduct for plan fiduciaries and for the disclosure of financial and other plan information. Our Firm handles disability benefit claims, including short and long term disability claims at the administrative and litigation levels.
The Employee Retirement Income Security Act (ERISA) passed the responsibility of retirement savings from the employer to the employee. IRAs were created in 1975 to provide individuals a chance to direct where their retirement funds were invested. Rather than distinguishing which investments are allowed, the IRS code instead identifies which investments are not permitted under these laws. Only two types of investments are excluded under ERISA and IRS Codes: • Life Insurance Contracts • Collectibles such as works of art, rugs, jewelry, etc. IRS Code Sec.
ERISA, the Employee Retirement Income Security Act of 1974, was enacted by the federal government to protect the interest of participants in private employee benefit plans. ERISA requires plans to provide participants with information about plan features and funding; sets forth the legal responsibilities of those who manage and control plan assets; and requires plans to establish a fair claims process. If benefits are improperly denied, or if plan assets are mismanaged, plan participants can sue the employer or union sponsor of the plan through ERISA.
