Federal government websites often end in. The site is secure. The Employee Retirement Income Security Act of ERISA is a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans.
The Employee Retirement Income Security Act of ERISA , a federal statute, delineates minimum standards for the administration of private industry's pension plans and establishes the impact that federal income taxes will have on transactions associated with management of such pension plans.
The statute also creates causes of action for employee plan participants and their beneficiaries. Under ERISA, employers receive fiduciary responsibilities, and employee plan participants can sue the employers in cases of fiduciary breach.
Napoletano, John Schmidt. Contributor, Editor. Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations. Was this article helpful? Share your feedback. Send feedback to the editorial team. Rate this Article. Thank You for your feedback! Something went wrong. Please try again later. Our Guides To Retirement. Retirement More from. By Kat Tretina Contributor. It establishes standards of conduct for plan managers and other fiduciaries.
It establishes enforcement provisions to ensure that plan funds are protected and that qualifying participants receive their benefits, even if a company goes bankrupt.
ERISA covers retirement plans and welfare benefit plans. ERISA protects retirement savings from mismanagement and abuse, and clarifies that those in charge of those savings be held to a high standard — that is, they must act in the best interests of plan participants.
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