Organizations that offer benefits are an important aspect in the business world. However, all individuals within the business world do need to have protection. ERISA protects the rights of employees and their pensions. There are different types also involved with ERISA. In this paper, the author will discuss the history and purposes of ERISA and answer what prompted the ERISA enactment. The author will also discuss the types of benefits, which ERISA protects, and how it protects these specific benefits. This paper will also list requirements that ERISA imposes on plan administrators.
History of ERISAERISA is involved many laws and was reorganized in 1978. It began in 1974, and protects the rights of employees and their pensions. In addition, their are two types of ERISA. Type 1 is communication. For example, reporting. Type 2 is how the company invests Fiduciary responsibilities. ERISA is in short for "Employee Retirement Income Security Act of 1974 (ERISA)" (www.dol.gov/ebsa/aboutebsa/history.html).
Within ERISA, the provisions, which are administered by the U.S. department of Labor "were enacted to address public concern that funds of private pension plans were being mismanaged and abused. ERISA was the culmination of a long line of legislation concerned with the labor and tax aspects of employee benefit plans" ( www.dol.gov/ebsa/aboutebsa/history.html). ERISA has evolved to meet many challenges and the protection provided by ERISA is not only aimed to protect the employee, but the family as well.
Circumstances that Prompted ERISAThe provisions of ERISA were enacted to address public concern that funds of private pension plans were being mismanaged and abused. The employees and their families were in need of protection and ERISA was aware and took action. ERISA also protects the interests of participants and their beneficiaries and prevents any form of loss to the individuals. This law protects individuals from...