What does the Employee Retirement Income Security Act (ERISA) govern?

What does the Employee Retirement Income Security Act (ERISA) govern?

• A. Government employee pensions
• B. Private pension and health plans for employees
• C. Employee training and development programs
• D. Social security contributions from employees

Answer: (B)

The Employee Retirement Income Security Act (ERISA) governs private pension and health plans for employees. Enacted in 1974, ERISA's primary purpose is to provide guidance and standards for private-sector employee benefit plans. It establishes rules to protect the interests of employee benefit plan participants and their beneficiaries, ensuring that there are minimum standards for pension plans and health benefits. ERISA covers issues such as reporting and disclosure to participants, the fiduciary responsibilities of plan managers, and the establishment of a claims and appeals process for beneficiaries. This act does not pertain to government employee pensions, employee training and development programs, or social security contributions, as those areas are regulated by different statutes and governmental agencies. By specifically applying to private employer-sponsored plans, ERISA plays a crucial role in safeguarding employees' rights regarding their retirement and health care benefits.

The Employee Retirement Income Security Act (ERISA) governs private pension and health plans for employees. Enacted in 1974, ERISA's primary purpose is to provide guidance and standards for private-sector employee benefit plans. It establishes rules to protect the interests of employee benefit plan participants and their beneficiaries, ensuring that there are minimum standards for pension plans and health benefits.

ERISA covers issues such as reporting and disclosure to participants, the fiduciary responsibilities of plan managers, and the establishment of a claims and appeals process for beneficiaries. This act does not pertain to government employee pensions, employee training and development programs, or social security contributions, as those areas are regulated by different statutes and governmental agencies. By specifically applying to private employer-sponsored plans, ERISA plays a crucial role in safeguarding employees' rights regarding their retirement and health care benefits.