ERISA
Essentials

Employee Retirement Income Security Act (ERISA) is a federal law established in 1974 that sets standards for private pension plans and employee benefits, such as health and retirement plans, offered by employers in the United States. ERISA aims to protect employees’ rights and interests by establishing rules for plan administration, disclosure of plan information, fiduciary responsibilities, and remedies for participants in case of disputes or breaches of fiduciary duty.

An ERISA plan refers to an employee benefit plan governed by the Employee Retirement Income Security Act (ERISA) of 1974. Examples of these plans include various employee benefits such as pensions, retirement savings plans (like 401ks), health insurance, life insurance, and disability insurance provided by employers to their employees. ERISA sets standards for the administration and management of these plans, including requirements for reporting, disclosure, and fiduciary responsibilities to ensure the protection of employees’ rights and interests.

Entities subject to ERISA include private-sector employers that offer employee benefit plans such as pensions, retirement savings plans (like 401ks), health insurance, life insurance, and disability insurance. Private-sector employers that offer benefits to just one employee must meet the disclosure requirements. Additionally, ERISA covers plan fiduciaries, including those responsible for managing and overseeing employee benefit plans, as well as service providers who assist in the administration of these plans. Generally, the reporting requirement, known as the 5500 filing, applies to employers with more than 100 participants on the first day of the ERISA plan year. However, smaller employers may also be subject to ERISA’s reporting requirements if they hold plan assets in a trust.