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.
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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

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References in periodicals archive ?
Justice Sandra Day O'Connor delivered the opinion of the High Court that the Employee Retirement Income Security Act requires both a procedure for amending a benefit plan and a procedure for identifying the persons having the authority to make such amendments.
of violating the Employee Retirement Income Security Act (ERISA) in the management of its employee stock ownership plan (ESOP) shows that the ripple effects of the Supreme Court's 2014 decision in Fifth Third Bancorp v.
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.
412 (1)(7)(C)(ii) (and parallel Employee Retirement Income Security Act of 1974 Section 302(d)(7)(C)(ii)) to determine current liability for participants and beneficiaries (other than disabled participants) of defined-benefit plans for plan years beginning in 2007.
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.
This reference reprints the Employee Retirement Income Security Act of 1974 (ERISA) as amended through April 15, 2005 and pertinent sections of the Internal Revenue Code.
Department of Labor are offering free seminars to educate employers and service providers about their fiduciary responsibilities under the Employee Retirement Income Security Act (ERISA) (www.dol.
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. The expanded program is part of a series of compliance assistance initiatives by the department's Employee Benefits Security Administration, which regulates employee pension and health benefit plans for U.S.
525 would bring health plans offered by associations under a federal statute, the Employee Retirement Income Security Act of 1974 (ERISA), allowing them to comply with one federal statute.
Disagreeing with the Eighth Circuit, the Third Circuit held that a health maintenance organization (HMO) does not breach its fiduciary duties under the Employee Retirement Income Security Act (ERISA) when it fails to disclose the financial incentives it provides to health care providers to ration care unless (1) a member of the HMO requests such information, (2) circumstances have put the HMO on notice that its members require such information to avoid making bad decisions regarding their health care coverage, or (3) an HMO patient was harmed as a result of not having such information disclosed to them.
The Insurance Department also learned Benefit Plans may have been marketed as a Federal Employee Retirement Income security Act plan, exempt from state regulation.
The Employee Retirement Income Security Act (ERISA) exempts self-insured plans from state regulation since they are regulated by federal law.

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