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Pension Law

Federal pension law is mandated under the Employee Retirement Income Security Act as monitored by the U.S. Department of Labor. The law is designed to protect the interests of employees who buy into a pension plan in preparation for retirement. Along with federal pension law, most states have separate pension laws that address the same needs and concerns as their federal counterparts. The pension law covers an assortment of issues that are designed to ensure the proper use and payment of pension funds.

Fast Facts

  • Information regarding federal pension law is available through the Employee Benefits Security Administration.
  • The pension law does not require employers to compensate their employees with any form of pension. The Employee Retirement Income Security Act was passed in response to mismanagement of pension funds.
  • The pension law affords tax breaks to employers who offer pension plans. To qualify, these plans must meet minimum requirements and must be vested.

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