Pension & Employee Benefits Code Under ERISA Regulations

The Employee Retirement Income Security Act grants employees signficant rights in regards to their retirement plans.

The Employee Retirement Income Security Act (ERISA) governs most private sector employee benefit plans, including retirement plans. It grants employees certain rights regarding their pension or health benefit plans.

Standards

ERISA sets uniform minimum standards for employee benefit plans and employers have an obligation to provide promised benefits and satisfy the requirements for administering private retirement plans.

Employer Obligations

Employers or those that manage their retirement plan funds must manage plans for the exclusive benefit of participants, refraining from conflict of interest transactions. They must also comply with certain limitations on investments as provided by law and report information on the operations and financial condition of plans to the government and participants.

Health Coverage

Part 6 of Title I of ERISA codifies the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) and gives former employees and their beneficiaries the right to temporary continuation of health coverage at group rates if their employment is terminated. Employers or their plan managers must give covered individuals notice informing them of their rights under COBRA .

References

• U.S. Department of Labor: Employee Benefit Plans