Erisa Law Explained In Franklin
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The Employee Retirement Income Security Act (ERISA) requires plan administrators to give to participants and beneficiaries a Summary Plan Description (SPD) describing their rights, benefits, and responsibilities under the plan in understandable language. The SPD includes such information as: Name and type of plan.
The provisions of Title I of ERISA, which are administered by the U.S. Department of Labor, were enacted to address public concern that funds of private pension plans were being mismanaged and abused.
The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans.
ERISA applies to a wide range of employee benefits – pensions, 401(k) and 403(b) plans (non-government employees), disability, health, and life insurance benefits, along with severance and other benefits administered by employers.
Key Takeaway: ERISA Established New Fiduciary Standards As we now know, ERISA's primary purpose is to ensure employees and their beneficiaries' interests are protected from unfair practices and abuse by their employers.
Under ERISA, each fund is subject to additional requirements and obligations once more than 25 percent of the fund's assets under management (AUM) are subject to ERISA (the 25 percent threshold).
What IS an Expense Account, also known as an ERISA Account, ERISA Budgets Account, or Revenue- Sharing Account? Simply put, it's an account to which your plan provider/recordkeeper deposits the excess revenue sharing dollars they collect from the investment products used by your plan.
Non-ERISA 403(b) plans do not involve employer contributions, involve voluntary plan participation only, and do not need to follow the stipulations of the Act.
IS AN ERISA FiDELiTY BOND THE SAME THiNG AS FiDUCiARY LiABiLiTY iNSURANCE? No. The fidelity bond required under ERISA specifically insures a plan against losses due to fraud or dishonesty (e.g., theft) by persons who handle plan funds or property.
For example, if your employer maintains a retirement plan, ERISA specifies when you must be allowed to become a participant, how long you have to work before you have a non-forfeitable interest in your benefit, how long you can be away from your job before it might affect your benefit, and whether your spouse has a ...