Erisa Law

ERISA is used to refer to the body of laws regulating employee benefit plans.  ERISA is also the acronym for Employee Retirement Income Security Act of 1974. ERISA laws and ERISA regulations are enforced by the Department of Labor's Employee Benefits Security Administration (EBSA) is responsible for administering and enforcing ERISA regulations and ERISA Laws.

What the Act Covers

ERISA covers employee pension plans and health benefit plans.  Employers are not required to have these plans but once they establish these plans they must meet the minimum standards established by ERISA regulations and ERISA Laws.  ERISA preemption applies to all state laws involving employer benefit plans.

• Some of the Pension Plans requirements are:
• Provide for vesting of employees' pension benefits after a specified minimum number of years.

A defined benefit plan must pay a married participant's pension as a "joint-and-survivor annuity" that provides continuing benefits to the surviving spouse unless both the participant and the spouse waive the survivor coverage.

Participants must be provided plan summaries.

Employers are required to report information about the plan to the Labor Department and provide it to participants upon request.

• Persons handling employee’s pension fund are required to have an ERISA bond to protect the employee funds from fraud.

Health care benefit plan amendments require the following.

• Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) provides some employees and beneficiaries with the right to continue their coverage under an employer-sponsored group health benefit plan for a limited time the occurrence of certain events that would otherwise cause termination of such coverage, such as the loss of employment.
• The Health Insurance Portability and Accountability Act of 1996 (HIPAA) prohibits a health benefit plan from refusing to cover an employee's pre-existing medical conditions in some circumstances.  It also bars health benefit plans from certain types of discrimination based on health status, genetic information, or disability.

Other changes under the health care plans require protection to mothers and newborns, mental health care and women’s health and cancer rights.

Do you Need a Lawyer?

ERISA laws and ERISA regulations are complicated.  There are tax consequences certain transactions.  Competent legal counsel in this area is important.  Select a lawyer who has experience with ERISA and tax issues.