Employee Retirement Income Security Act


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Employee Retirement Income Security Act (ERISA)

The law that regulates the operation of private pensions and benefit plans.

Employee Retirement Income Security Act of 1974

Legislation in the United States, passed in 1974, that established a number of regulations to ensure that employers and other involved parties do not misuse the funds entrusted to them in retirement accounts. Among other provisions, the Act requires retirement account managers to provide information to account holders on a regular basis. It also sets standards for managers' use of discretionary authority and allows account holders to sue their pensions for unpaid benefits.

Employee Retirement Income Security Act (ERISA)

A 1974 act that protects the retirement income of pension fund participants by setting standards for eligibility, performance, investment selection, funding, and vesting. The Act was designed to curb abuses by pension fund managers so as to ensure that retirement funds would actually be available at the time of the workers' retirement.

Employee Retirement Income Security Act (ERISA).

This comprehensive law, best known by the acronym ERISA, governs qualified retirement plans, including most private-company defined benefit and defined contribution plans, and protects the rights of the employees who participate in the plans.

ERISA also established individual retirement arrangements (IRAs), made it easier for self-employed people to set up retirement plans, and made employee stock ownership plans part of the tax code.

Among ERISA requirements are that plan participants receive a detailed document that explains how their plan operates, what employee rights are -- including qualifying to participate and uniform vesting schedules -- and what the grievance and appeals process is.

In addition, ERISA assigns fiduciary responsibility to those who sponsor, manage, and control plan assets. This means they must act in the best interests of the plan participants. ERISA rules do not apply to plans provided by federal, state, or local governments, church plans, or certain other plans.

ERISA has been amended several times since it was passed in 1974, making some provisions more flexible and others more restrictive. Among the changes were the Consolidated Omnibus Budget Reconciliation Act (COBRA), which provides continuing access to coverage, for a fee, when an employee leaves an employer who offers health insurance, and the Health Insurance Portability and Accountability Act (HIPAA), which protects access to health insurance coverage for employees and their families with pre-existing medical conditions when the employee leaves a job that provided coverage and moves to a new job where coverage is also offered.

References in periodicals archive ?
The Employee Retirement Income Security Act (ERISA) regulates the employee benefit plans of nearly all for-profit businesses in the U.
Keightley, General Counsel of the Pension Benefit Guaranty Corporation, relating to the annual financial and actuarial reporting requirements imposed under section 4010 of the Employee Retirement Income Security Act of 1974 (ERISA).
But most employer-based group health insurance plans are governed by a federal law called the Employee Retirement Income Security Act (ERISA).
Supreme Court has ruled that the standard provision in many employer-provided benefit plans allowing a company to amend its plan at any time does comply with the Employee Retirement Income Security Act.
PBGC is a federal corporation created under the Employee Retirement Income Security Act of 1974 to guarantee payment of basic pension benefits earned by nearly 41 million American workers and retirees participating in private-sector defined benefit pension plans.
New provisions under the Employee Retirement Income Security Act (ERISA) give employees greater choice and flexibility in pension plans in which they direct their own investment decisions.
Investors include a mix of public pension plans, Employee Retirement Income Security Act (ERISA) plans, endowments, family offices and high net worth individuals.
Regulations of the Internal Revenue Code, Employee Retirement Income Security Act, and Age Discrimination in Employment Act will affect efforts by employers to extend benefits beyond age 65.
6081-1lT, Form 5558, Application for Extension of Time To File Certain Employee Plan Returns, has been revised to allow administrators and sponsors of employee benefit plans subject to the Employee Retirement Income Security Act of 1974, an automatic 2 1/2-month filing extension.
The Department of Labor's Employee Benefits Security Administration (EBSA) has begun a new enforcement initiative to monitor the quality of audits of employee benefit plans subject to the Employee Retirement Income Security Act.
Regardless of materiality, failure to remit or untimely remittance of participant contributions is a prohibited transaction under the Employee Retirement Income Security Act (ERISA), notes Linda S.
Department of Labor are expanding their nationwide campaign to improve workers' health and retirement security by educating employers and service providers about their fiduciary responsibilities under the Employee Retirement Income Security Act.

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