
The purpose of the Employee Retirement Income Security Act (ERISA) is to protect employees who are counting on retirement benefits or pensions that their employer promised them.
ERISA sets guidelines and rules for how employee retirement funds must be managed and establishes strict guidelines for when and how employees earn a non-forfeitable interest in promised pension benefits.
It also provides a remedy for employees if their pension funds are mismanaged, and the Pension Benefit Guaranty Company provides a source of funding to pay out benefits in the event that an employer fails to pay out defined benefits as promised.
The purpose of the Employee Retirement Income Security Act (ERISA) is to protect employees who are counting on retirement benefits or pensions that their employer promised to provide after they leave employment. ERISA includes requirements for maintaining and paying out benefits as defined by retirement plans and benefit plans (e.g., long-term disability insurance).
ERISA sets guidelines and rules for how employee retirement funds and benefit plans must be managed and establishes strict guidelines for when and how employees earn a non-forfeitable interest in promised pension benefits.
The ERISA law also requires plans to establish grievance and appeals processes that participants may pursue if benefit payments are disputed. It gives participants the right to sue for unpaid benefits and over plan administrators’ breaches of fiduciary duty. It also provides a remedy for employees if their pension funds are mismanaged. The Pension Benefit Guaranty Company provides a source of funding to pay benefits in the event that an employer fails to pay out defined benefits as promised.
If you have been denied pension or healthcare benefits that you were promised by a former employer, contact a South Carolina ERISA lawyer at Joye Law.
Phone (888) 324-3100 or fill out our online contact form for a free and confidential claim evaluation.
Does Erisa Apply to My Benefits?
ERISA ensures that benefits that are part of an employee’s retirement or severance package are provided as promised. The language of the ERISA law refers to employer-provided benefits as “employee welfare benefit plans.” The law applies to plans established and maintained by an employer to provide benefits to current or former employees or their beneficiaries.
ERISA applies to numerous types of benefit plans:
- Defined-benefit and defined-contribution retirement funds (pensions).
- Insurance plans, including HMO/group insurance plans, such as health and medical care insurance.
- 419(e) Welfare Benefits Plans, including and 419(a)(f)(6) plans.
- Health savings accounts (HRAs) that are funded through pre-tax contributions.
- Flexible spending accounts (FSAs).
- Dental insurance plans.
- Prescription drug plans.
- Vision plans.
- Disability insurance.
- Long-term care insurance plans.
- Business travel insurance.
- Unemployment benefits.
- Scholarship plans.
- Housing assistance plans.
- Training plans.
- Vacation plans.
- Pre-paid legal service plans.