The Employee Retirement Income Security Act (ERISA) was enacted to ensure that employees receive the pension and other benefits promised by their employers. ERISA also incorporates and is tied to Internal Revenue Code (IRC) provisions designed to encourage employers to provide retirement and other benefits to their employees. Most provisions of ERISA and the IRC are intended to ensure that tax-favored pension plans do not favor the highest-paid employees over rank-and-file employees. ERISA has a complex series of rules that cover pension, profit-sharing stock bonuses, and most "welfare benefit plans," such as health and life insurance. ERISA supersedes almost all state laws that affect employee benefit plans and has created a single federal standard for employee benefits. An employer's responsibilities under ERISA vary depending on the type of plan involved.
Supreme Court Ruling: A Big Win for 401(k) Participants?
A tenacious management consultant, convinced that his plan "fiduciary" had bungled his 401(k) retirement savings plan, took his employer to court to recoup what he said was the resulting shortfall in his account. He ultimately won the right to sue, but what his victory may mean for future plaintiffs is still uncertain. BLR spoke with two attorneys to help make better sense of it all.
Raise Your Right Hand: I Promise to Choose Plan Investments Wisely
There are experts out there who worry about how much you really know about your plan investments. They worry that you'll find yourself with an ERISA-liability problem if you don't learn just a little bit more.
Guidance Issued for Single-Employer DB Plans
Employers sponsoring single-employer defined benefit plans may be interested in new guidance from the Treasury Department and the Internal Revenue Service related to the new funding rules enacted as part of the Pension Protection Act of 2006.
Revised Fee Disclosure Bill 'Worse' Than Original
The U.S. Department of Labor (DOL) and an industry organization have expressed concern about a revised version of The 401(k) Fair Disclosure for Retirement Security Act (H.R. 3185), which was recently marked up by the House Education and Labor Committee.
