The Employee Retirement Income Security Act of 1974 (ERISA) (Pub.L. 93-406, 88 Stat. 829, enacted September 2, 1974) is an American federal statute that establishes minimum standards for pension plans in private industry and provides for extensive rules on the federal income tax effects of transactions associated with employee benefit plans. ERISA was enacted to protect the interests of employee benefit plan participants and their beneficiaries by: Requiring the disclosure of financial and other information concerning the plan to beneficiaries; Establishing standards of conduct for plan fiduciaries; Providing for appropriate remedies and access to the federal courts. ERISA is sometimes used to refer [ Read More ]
The Employee Retirement Income Security Act imposes responsibilities on employers who offer benefit plans to their employees and provides certain rules and regulations concerning the administration of the plans. The rules that govern plans differ depending on the type of plan offered by the employer. Some plans, however, are not governed by ERISA and are called “exempt plans.” Governmental benefits plans are specifically exempted from ERISA application by the statute. The benefits plans of most non-governmental employers are governed by ERISA. In order for a benefits plan to be exempt from the requirements of ERISA, one or more of the [ Read More ]
