What Does ERISA Mean For You?
Have you ever wondered what does ERISA mean? You see, ERISA is an acronym for the Employee Retirement Income Security Act of 1974. It’s a federal law that establishes the minimum standards for pension plans in private industry. The ERISA act provides for extensive rules on the federal income tax effects of transactions that are associated with employee benefit plants.
The government enacted ERISA laws to protect the interests of employee benefit plan participants. So what does ERISA mean for these individuals? To achieve this goal, it requires the disclosure of financial and other information concerning the plan to beneficiaries, establishes conduct standards for plan fiduciaries, and provides for appropriate remedies and access to federal courts.
But what does ERISA mean in layman’s terms? Once all the technical jargon and lingo has been gotten through, the act, in short, protects private employees. It gives them the right to sue for benefits, and breaches of fiduciary conduct. The act ensures that a company follows through with their benefit plan promises, and won’t misuse or mismanage assets through its fiduciary provision.
Of course, knowing what does ERISA mean is one thing, but it’s another to be able to actually put its powers to good use. In order to truly tap into its protection, a private employee can hire a lawyer that specializes in ERISA laws. These attorneys are most commonly needed for private employees that were promised disability, but received no such benefits when push came to shove.
If you have any questions about ERISA, feel free to ask in the comments. Continue reading here: herbertmhill.com
