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ALL ABOUT ERISA

Contrary to urban legend, ERISA does not stand for “Every Ridiculous Idea Since Adam.” Instead, it is an acronym for the Employee Retirement Income Security Act of 1974. ERISA is a federal law that regulates employer-sponsored retirement plans and health plans. (ERISA does not cover IRAs because they are not sponsored by an employer.) For retirement plans, ERISA imposes certain requirements on the sponsoring employer and other plan officials. These requirements include: Filing annual reports with the IRS; Providing certain communications to plan participants, including a plan summary (called a “summary plan description”); Complying with certain standards for eligibility, vesting and plan funding; Read More

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