The Employee Retirement Income Security Act (ERISA)

The Employee Retirement Income Security Act (ERISA)
ERISA was enacted to protect the interests of participants in employee benefit plans as well as the interests of the beneficiaries. While all sections of the act—often referred to as the Pension Reform Act—generally apply to retirement plans, certain sections pertaining to fiduciary responsibility and reporting and disclosure also apply to employee welfare benefit plans, including most traditional group insurance plans. ERISA defines a welfare benefit plan as any plan, fund, or program established or maintained by an employer (or an employee organization) for the purpose of providing for its participants or their beneficiaries, through the purchase of insurance or otherwise, any of the following:

- Medical, surgical, or hospital care or benefits

- Benefits in the event of sickness, accident, disability, death, or unemployment

- Vacation benefits

- Apprenticeship or other training programs

- Day care centers

- Scholarship funds

- Prepaid legal services

Any benefit described in Section 302(c) of the Labor Management Relations Act of 1947, such as holiday pay and severance pay

Because of its greater impact on retirement plans, the complete discussion of ERISA is contained in Part Five. The provisions of most relevance to employee welfare benefit plans—fiduciary responsibilities and reporting and disclosure requirements