Tag: Employee Retirement Income Security Act of 1974

ERISA

ERISA: Understand How It May Affect Your Benefits

Posted by Jeffrey Bolender on with 0 Comment

The Employee Retirement Income Security Act of 1974 (ERISA) was enacted solely for the protection of employees and all promised to them from their employers regarding employment. Over the years that has expanded to health plans and other benefits too. According to the United States Department of Labor, ERISA currently covers approximately 684,000 retirement plans, 2.4 million health plans, and 2.4 million additional welfare benefit plans—affecting 141 million workers in the US, with over $7.6 trillion in assets.

Just over half of the employees in our country are being offered retirement and/or health benefits as ERISA is meant to work on their behalf in seeing that pension plans and other benefits are handled responsibly by employers and fiduciaries. If you have a retirement plan or other benefits at the company you work for, ERISA protection should affect you positively as those you work for are held to particular standards in terms of making sure that you not only receive what you were promised, but that they also are completely open in allowing you access to your plans and all that is involved within them.

“More than half of America’s workers earn health benefits on the job, and ERISA protects those too, as well as other employee benefits,” states the United States Department of Labor.

Through ERISA, employers are required to make sure employees are apprised of their benefit plans. ERISA administration also makes the rules regarding items such as:

  • Plan participation for employees
  • Vesting details
  • How benefits accumulate
  • Funding procedures

Accountability regarding fiduciaries is also one of the main requirements issued by ERISA – harkening back to the administration’s original mission to make sure companies do not mismanage plans, leaving employees with little to nothing – or even worse, embezzling money that was supposed to be set aside for pensions and more. There are strict penalties if ‘principles of conduct’ are not followed, meaning that they would have to pay back any lost plan funds. Employees are also imbued with the power to sue over such issues, along with the possibility of being paid through the Pension Benefit Guaranty Corporation if a plan is discontinued.

Whether you are an employer or an employee, you may have numerous questions about the complexities of ERISA and how it applies to you. If your benefit plan has been disrupted or denied, you may also need skilled legal advice form a law firm experienced in both insurance law and business law.

Contact the Bolender Law Firm. If a dispute over a claim cannot be easily resolved through a call or written communication, our attorneys will advocate on your behalf through litigation, arbitration, or non-binding mediation. Our attorneys are experienced in representing clients in state and federal courts, at both the trial and appellate level. Call us at 310-320-0725 now or submit an easy consultation request online. We are here to help!

ERISA

History: The Employment Retirement Income Security Act (ERISA)

Posted by Jeffrey Bolender on with 0 Comment

The Employee Retirement Income Security Act of 1974 (ERISA) was enacted, plain and simple, to protect employees. This came about long after egregious acts by employers who mismanaged pensions and retirement plans—leaving long-term, hardworking employees with nothing in some more extreme cases such as that of Studebaker leaving thousands out in the cold in the early ‘60s. Pension reform was needed, but it did take time.

Throughout the years, ERISA has been amended several times as lawmakers work to refine it further to protect individuals in the US looking forward to the benefits they have been promised. And while pensions were not offered or expected by most before 1900, today they are a benefit many individuals seek—looking toward security in their later years. ERISA originally administered to a range of different tax and labor issues for employees and their retirement plans, but over time it has been expanded to include requiring minimum standards for other benefits like health and disability insurance, scholarship programs, training programs, and more.

“ERISA requires plans to provide participants with plan information including important information about plan features and funding; provides fiduciary responsibilities for those who manage and control plan assets; requires plans to establish a grievance and appeals process for participants to get benefits from their plans; and gives participants the right to sue for benefits and breaches of fiduciary duty,” states the U.S. Department of Labor.

Over time, ERISA has grown through critical amendments as well, such as the:

  • Consolidated Omnibus Budget Reconciliation Act (COBRA)
  • Health Insurance Portability and Accountability Act (HIPAA)
  • Newborns’ and Mothers’ Health Protection Act
  • Mental Health Parity Act
  • Women’s Health and Cancer Rights Act

Today three different entities administer ERISA: the IRS, the U.S. Department of Labor, and the Pension Benefit Guaranty Corporation. Whether you are an employer or an employee, you may have numerous questions about the complexities of ERISA and how it applies to you. If your benefit plan has been disrupted or denied, you may also need skilled legal advice form a law firm experienced in both insurance law and business law.

Contact the Bolender Law Firm. If a dispute over a claim cannot be easily resolved through a call or written communication, our attorneys will advocate on your behalf through litigation, arbitration, or non-binding mediation. Our attorneys are experienced in representing clients in state and federal courts, at both the trial and appellate level. Call us at 310-320-0725 now or submit an easy consultation request online. We are here to help!