What is the Employee Retirement Income Security Act (ERISA)?
The U.S. Congress, out of concern over corporate mismanagement of worker’s retirement funds, passed this act in 1974. It establishes detailed regulations effecting employee “welfare” and pension benefits; it establishes certain rights for employees, and it establishes responsibilities for employers concerning benefit plans that were created after January 1, 1975. ERISA effectively federalizes all disputes over employment related benefits, and preempts all state law for cases involving business engaged in interstate commerce.
