An ERISA Fundamentals Review
February 9, 2023 | Barton Walter and Krier
The Employee Retirement Income Security Act (ERISA) oversees and manages benefit plans provided to employees by their employers. Since its inception, some guidelines have been amended, but the basic principles remain the same. At Barton, Walter & Krier, we wanted to present an ERISA fundamentals review and offer our services to businesses on this retirement plan protection. ERISA Explained In 1974, the ERISA federal tax and labor law established regulations on employee benefits plans. The goal was to protect participants’ retirement savings from potential misconduct. The safeguards set forth by ERISA protect current employees and their beneficiaries as well as retirees. Employer-sponsored plans covered under ERISA include 401(k)s and 403(b)s, pensions, and profit-sharing plans. Specified non-retirement plans such as FSAs, disability and life insurance, and HMOs are also covered by ERISA. Updates to ERISA While the initial act incorporated the minimum standards for benefits plans, the laws have been updated over the decades to reflect healthcare legislation and workers’ ever-evolving needs. Some of the most important modifications to ERISA include: Eligibility and Obligations Requirements for ERISA apply equally to private-sector businesses of all sizes. Plans that provide benefits to businesses with at least one employee are covered, as are S-corps and C-corps, partnerships, and LLCs. At the minimum, employers are required to act […]
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