Employee Retirement Income Security Act of 1974 (ERISA)

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:

1. Defines standards for the code of conduct for fiduciaries
2. Requires that fiduciaries administer and manage their plans prudently and in the interest of the plan’s participants and beneficiaries.
3. Requires plans to provide participants with information about the plan including important information about plan features and funding. 
4. Gives participants the right to sue for benefits and breaches of fiduciary duty.
5. 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

ERISA law

Additional Helpful Information

The following are some subsections of ERISA. The detailed list is at Benefitslink.com

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.
• EBSA Publications and Reports
• EBSA Frequently Asked Questions