Employee Retirement Income Security Act ( ERISA)

The Employee Retirement Income Security Act (ERISA) is a federal statute managed by agencies like the Department of Labor and IRS. It sets standards for employers offering retirement or benefit plans, imposing fiduciary duties such as loyalty and care. ERISA covers defined benefit and contribution plans, requiring plans to be funded adequately and detailing vesting schedules. Employers must also pay premiums to the Pension Benefit Guarantee Corporation to protect against pension fund losses, ensuring employees receive promised benefits.

How does ERISA ensure that employees are informed about their benefit plans?

What is the significance of the vesting schedule in defined benefit plans?