Employee Retirement Income Security Act (ERISA)

The Employee Retirement Income Security Act of 1974 (ERISA) is a United States federal law that establishes minimum standards for pension plans in private industry and provides for their oversight. ERISA was enacted to protect the interests of employees and beneficiaries in private pension plans. The law does not apply to government plans, church plans, or plans maintained by certain tax-exempt organizations.

ERISA establishes a number of requirements for pension plans, including:

• Participation and vesting requirements
• Funding requirements
• Disclosure requirements
• Fiduciary responsibility requirements

ERISA also provides for a number of enforcement mechanisms, including:

• The Pension Benefit Guaranty Corporation (PBGC), which is a federal agency that insures pension plans against insolvency
• The Department of Labor (DOL), which is responsible for enforcing ERISA's provisions

ERISA has been a significant factor in the growth of the private pension system in the United States. The law has helped to protect the interests of employees and beneficiaries in private pension plans, and it has also helped to ensure the financial stability of the pension system as a whole.

In addition to its provisions for private pension plans, ERISA also contains a number of provisions that apply to health insurance plans sponsored by employers. These provisions include:

• A requirement that employers provide health insurance coverage to employees who work at least 30 hours per week
• A prohibition on discrimination in health insurance coverage based on health status
• A requirement that health insurance plans provide coverage for a number of essential health benefits

The health insurance provisions of ERISA have been a significant factor in the expansion of health insurance coverage in the United States. These provisions have helped to make health insurance more affordable and accessible for many people, and they have also helped to improve the quality of health insurance coverage.

ERISA is a complex law with a wide range of provisions. The law has been interpreted and applied by the courts and the DOL in a number of cases. As a result, there is a body of case law that provides guidance on how ERISA is to be interpreted and applied.

ERISA is an important law that has had a significant impact on the private pension and health insurance systems in the United States. The law has helped to protect the interests of employees and beneficiaries in private pension plans, and it has also helped to expand health insurance coverage. ERISA is a complex law, but it is an important one that plays a vital role in the American economy.