Erisa Law Explained In New York
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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.
Civil and criminal sanctions are enforced when employers fail to adhere to ERISA standards for private-sector employee benefit plans. Violations include denying benefits improperly, breaching fiduciary duties, or interfering with employee rights under the plan.
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.
Types of ERISA Claims Consider the following examples, which is not exhaustive: An employee who has a long-term disability plan that provides benefits if she is totally disabled. After suffering a serious fall at work, the employee struggles with a traumatic brain injury and other impairments.
An ERISA lawsuit offers individuals the opportunity to recover various types of damages, including medical bills, lost wages, and pension benefits.
Civil and criminal sanctions are enforced when employers fail to adhere to ERISA standards for private-sector employee benefit plans. Violations include denying benefits improperly, breaching fiduciary duties, or interfering with employee rights under the plan.
An ERISA fidelity bond is a type of insurance that protects the plan against losses caused by acts of fraud or dishonesty. Fraud or dishonesty includes, but is not limited to, larceny, theft, embezzlement, forgery, misappropriation, wrongful abstraction, wrongful conversion, willful misapplication, and other acts.
What is a 401(k) fidelity bond? A fidelity bond, or ERISA bond, is an insurance policy that provides a 401(k) plan with protection from losses caused by any fraudulent behavior—such as embezzlement, theft, larceny, and misappropriation by those who have access to the plan's funds.
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).