What Is ERISA?

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As an insurance agent or any professional working in the industry, it’s important to keep up with the local, state and federal laws. Insurance brokers and agents may find that this is the most difficult part of their job. Trying to stay current with health care reform is a job all in itself considering that the policies often change. These changes usually cause quite a commotion with their impact they make on health plans and the Affordable Care Act.

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)

    • Dial 800-903-6066 and get free consultation on EBRI

    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.

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