ERISA
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Employee Retirement Income Security Act (ERISA) Information
What
does the Employee Retirement Income Security Act (ERISA) govern?
ERISA was passed
to protect the interest of participants in employee benefit plans and their
beneficiaries through disclosure and reporting requirements, and the establishment
of certain fiduciary standards of conduct, responsibility, and obligations.
Who
is covered by the Employee Retirement Income Security Act?
Any employee
benefit plan established or maintained by any employer, employee organization
or organization representing employees engaged in commerce or in any industry
or activity affecting commerce is covered by ERISA. ERISA does not apply
to government plans or tax-exempt church plans as defined by the Act. Also
exempt are plans maintained solely for the purpose of complying with workers
compensation, unemployment or disability insurance laws or those maintained
outside of the U.S. primarily for the benefit of persons substantially all
of whom are nonresident aliens. If a plan is an excess benefit, providing
benefits or contributions in excess of those allowable for tax qualified
plans, it is exempt from ERISA.
What
administrative body may impose remedies for a violation of the Employee
Retirement Income Security Act?
ERISA has designated
the Secretary of Labor broad powers to investigate and determine violations
and impose remedies. The Secretary of Labor, plan participants, beneficiaries
or fiduciaries, can bring ERISA actions to U.S. District Courts. Criminal
prosecutions may be brought against persons who willfully violate the Act.
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