YOU ASK:

What is the definition of Employee Retirement Income Security Act (ERISA)?

WE ANSWER:

Employee Retirement Income Security Act (or ERISA) is a federal requirement covering any pension, vesting or profit-sharing plans for employees of a company. The ERISA strives to fairly cover the retirement needs of an employee without relying too much on the employer.

ERISA requires that employers disclose the details of their employees' benefit plans. It also outlines how plan fiduciaries are to be administered and it also provides the employee with options of accessing the federal courts in cases of disputes or alleged violations.

The Department of the Treasury (specifically the Internal Revenue Service), the Pension Benefit Guaranty Corporation and the Department of Labor work together to ensure that companies comply with the ERISA.

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