Definition
Federal law that defines standards by which welfare benefit plans and qualified plans must operate.
For instance, if your employer maintains a qualified plan, ERISA specifies when you must be allowed to become a participant, how long you have to work before you become vested, how long you can be away from your job before it might affect your benefits, and whether your spouse has a right to part of your pension in the event of your death.
The following are just a few of the provisions of ERISA:
- Defines standards for the code of conduct for fiduciaries
- Requires that fiduciaries administer and manage their plans prudently and in the interest of the plan’s participants and beneficiaries.
- Requires plans to provide participants with information about the plan including important information about plan features and funding.
- Gives participants the right to sue for benefits and breaches of fiduciary duty.
- Guarantees payment of certain benefits if a defined plan is terminated, through the Pension Benefit Guaranty Corporation
ERISA created IRAs
ERISA sometimes incorporate areas of the Code & Treasury regulations
Referring Cite
Additional Helpful Information
Related Articles Tutorial or Other Content
- Employee Benefits Security Administration (EBSA) Compliance Assistance Portal – Assists employers and employee benefit plan officials in understanding and complying with the requirements of ERISA as it applies to the administration of employee pension and welfare benefit plans.
- Employment Law Guide: Employee Benefit Plans – Provides a summary of the requirements for most private sector employee benefit plans under ERISA.
