Retirement investments are one of the most important plans you will ever have to make. On average, Americans need to rely on savings for 18 years after their retirement. Therefore, making sure that you have made the appropriate investments is crucial so that you can have confidence that you will enjoy your later years without worry.
This blog will offer a brief overview into the Employee Retirement Income Security Act of 1974 (ERISA) and what features it can offer when it comes to helping you make the best decisions for you retirement financials.
What is ERISA?
ERISA is a federal law that ensures some minimum standards for the private sector when it comes to retirement plans. It means that every employee has some basic rights in regards to the state of the retirement plan that is provided by their employer. ERISA has put the following standard requirements in place:
- Plans must provide participants with a full disclosure of the plan that is in place.
- There are minimum standards for participation, investing, funding, and benefits. It also sets limits to how long a person should be required to work before they receive retirement benefits.
- Makes the fiduciaries, or those that manage the retirement plan, accountable for their control and mistakes.
- Participants have the right to sue for any breaches of duty made.
- Guarantees the payment of some benefits and savings, even if the plan is prematurely terminated.
Overall, ERISA is a set of guidelines that are designed to protect you and your retirement plan as an employee. If you have questions or believe that your legal rights have been violated, legal counsel may be of assistance.
Source: FindLaw, "Your retirement plan: what you should know," accessed Aug. 18, 2017