The modern workplace can be an unpredictable place. As you navigate the complex landscape of employer/employee relationships, you want to be sure that your rights for retirement savings are protected both now and in the future. That’s where the Employee Retirement Income Security Act (ERISA) comes into play.
What Is ERISA?
ERISA is a set of laws and regulations governing employee benefit plans, including pensions, health, and disability insurance plans. It was passed by Congress in 1974 to protect people’s rights to their retirement funds and other employee benefits. ERISA is overseen by the Employee Benefits Security Administration, a division of the Department of Labor.
What Does ERISA Do for You?
ERISA provides protections for employees regarding their retirement savings accounts, such as 401(k)s and IRAs. For example, it prohibits employers from misusing funds, requires employers to accurately report information about employee benefits, and requires employers to provide certain disclosures regarding employee benefits. ERISA also provides for certain ERISA fiduciaries, such as employers and their advisors, to be held responsible for remaining in compliance with ERISA duties. This helps ensure your retirement savings are managed properly.
Staying Informed of ERISA Changes
ERISA can be a complex and ever-changing landscape, with new laws and regulations constantly being introduced. It’s important to stay informed of the latest developments and changes so you can make the best informed decision about your retirement savings plan. Consulting with a professional accountant, tax advisor, or lawyer who specializes in ERISA compliance can be a useful tool to help you better understand the rights and obligations of your employer and yourself under ERISA.