what is an erisa plan

The Employee Retirement Income Security Act (ERISA) is a federal law from 1974 that governs how employers provide benefit plans to employees. ERISA ensures minimum standards are set for the majority of private industry pension and health plans, as well as other benefit plans such as life insurance. The law establishes requirements and guidelines for employers and benefit plan managers, trustees, and certain other service providers. ERISA sets rules and procedures to protect most private employee pension and health plans from fraud and mismanagement. Many types of employee pension and health plans, including employer-sponsored health care, fall under ERISA. ERISA doesn’t tell employers what kinds of benefits they have to provide or how many. It only sets rules for managing most employer-sponsored pension and health plans. ERISA requires plans to provide participants with plan information, including important information about plan features and funding, and sets minimum standards for participation, vesting, benefit accrual, and funding of retirement plans. ERISA also grants retirement plan participants the right to sue for benefits and breaches of fiduciary duty.