{"id":357887,"date":"2016-04-04T10:45:32","date_gmt":"2016-04-04T15:45:32","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/employment\/wages-and-benefits\/what-is-erisa.html"},"modified":"2025-04-14T11:08:00","modified_gmt":"2025-04-14T16:08:00","slug":"what-is-erisa","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/employment\/wages-and-benefits\/what-is-erisa.html","title":{"rendered":"What Is ERISA?"},"content":{"rendered":"\n
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What Is ERISA?<\/h1>\n
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\n By Olivia Wathne, J.D.<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

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ERISA is a federal law administered by the U.S. Department of Labor (DOL) that implements standards for private industry pension plans and welfare benefit plans. It plays an important role in protecting the retirement savings of millions of American workers and their beneficiaries.<\/p>\n\n <\/div>\n\n

Many employees worry about whether they’ll be able to save enough for retirement when starting a new job. The Employee Retirement Income Security Act of 1974,<\/a> also known as ERISA, is a federal law regulating employee benefit plans. The law provides guidelines to insurance companies and private sector employers on how to administer employee retirement benefits.<\/p>\r\n

Ensure your plan assets are protected. Contact a local ERISA law attorney<\/a> to learn more about ERISA compliance and how it can safeguard your retirement savings.<\/p>\r\n

ERISA requires regular disclosure of retirement plan features and performance. It also sets minimum standards for vesting and funding. This allows participants to sue for breaches of fiduciary duty.<\/p>\r\n

ERISA doesn’t cover retirement plans by governmental entities or established by churches. It also doesn’t cover plans that relate to state benefit laws, like workers’ compensation<\/a>. Although ERISA does not require private employers to have pension plans, it provides minimum standards for those that do.<\/p>\r\n

Read on to learn more about ERISA<\/a> and your rights when it comes to your employee retirement plan.<\/p>\r\n

Why Was ERISA Enacted?<\/h2>\r\n

Before ERISA, the U.S. Department of Labor (DOL<\/a>) started regulating employee benefit plans under the Welfare and Pension Plans Disclosure Act<\/a> (WPPDA). The WPPDA required employers to provide plan descriptions and annual financial reports to the government and plan participants. The WPPDA also helped employees monitor for abuse or mismanagement of their retirement plan assets. But, the scope of the WPPDA was still very limited.<\/p>\r\n

ERISA provisions apply to plan years starting on or after January 1, 1975. ERISA is administered by the Employee Benefits Security Administration (EBSA)<\/a>, which is part of the DOL. ERISA has broadened the scope of information available to plan participants.<\/p>\r\n

It has also implemented a type of healthcare plan enforcement<\/a> for health plans. This requires employers to manage funds exclusively for plan participants. They must also manage the plans in their employee’s best interests. ERISA has also expanded reporting procedures to the government.<\/p>\r\n

How Does ERISA Protect the Interests of Employees?<\/h2>\r\n

Under ERISA, providers are required to supply employees with plan documents and a summary plan description (SPD). The SPD summarizes the plan’s key features and provisions. It must be clear and understandable. The SPD is an important communication tool between the plan administrator and the participant.<\/p>\r\n

This applies to pension plans, including:<\/p>\r\n