The Employee Retirement Income Security Act of 1974, or ERISA Act, was established in September 1974 to set minimum standards pertaining to pension plans for U.S. workers within private industry. The primary intention of the ERISA laws was to safeguard the interests of benefit plan recipients.
Key ERISA rules focus on the effects of federal income taxes on all transactions related to employee benefit plans. Because the laws outlined under the Employee Retirement Security Act are so extensive, one usually requires the assistance of a leading ERISA lawyer whenever questions regarding the act arise.
Since the Employee Retirement Income Security Act of 1974 was designed to protect the rights of retirees’ pensions, it is in the best interest of any American who is receiving a a pension. After all, if you’re a retired worker who is receiving a pension, you depend on that money to pay your bills and protect your livelihood. In the cases of many retirees, their pension is what allows them to enjoy their retirement years.
However, one doesn’t need to be retired to fall under the jurisdiction of ERISA laws, and that is the way that it should be. When you consider that employee retirement benefits are at stake, this is clearly appropriate. As such, in the event that an employee is denied certain benefits by his or her employer, ERISA requires the employer to specify the reason for the employee’s ineligibility. Furthermore, “adequate notice” be given the employee, the reason for denial of benefits must be supplied to the employee in writing by the employer.
In addition to making a living, many employees spend 45 or 50 years working to enjoy retirement. Unfortunately, a comfortable, enjoyable retirement always requires more than social security payments. This will be especially true for future generations of American who might not even have social security.
That being said, it is important that every American worker know at least his or her basic rights under ERISA laws. In the event that questions regarding employee pensions do arise, and ERISA lawyer is always the best source for information and representation.