What Is ERISA?

The Employee Retirement Income Security Act (ERISA) of 1974 is a federal law that all insurance professionals are familiar with. This law sets the minimum standards for nearly all voluntary pension and health plans in the private sector. It helps provide protection to all individuals under these plans. As a requirement of ERISA, anyone with these plans is to receive any and all information regarding relevant news.

The Responsibilities and Expectations of ERISA

To update individuals with voluntary health and pension plans on all current funding information

To set the minimum standards for participation, vesting, funding and benefit increases

To provide responsibilities and tasks to those that control and manage the plans’ assets

To assure that plans establish a grievance and appeals process so individuals can access their benefits

To provide participants with the right to sue for benefits and breach of plans

To guarantee payment to those with terminated plans defined by a federally chartered corporation (PBGC)

ERISA is not affiliated nor has any relation with the following:

Government established or maintained retirement plans

Churches for employees

Plans maintained solely to conform with applicable workers compensation

Unemployment and disability laws

Plans maintained outside of the United States or by nonresidents of the nation

If you aren’t involved in the insurance industry but would like to learn more about ERISA and other laws in relation to health insurance and other benefit plans, contact a professional insurance broker. They are constantly kept up-to-date with the changes made to the laws regarding health insurance and should be capable of helping you to understand what it is you’d like to know.