Which of the following is a feature of the federal Employee Retirement Income Security Act (ERISA)? … The federal Employee Retirement Income Security Act (ERISA) regulates pension funds to help ensure their long-term financial security by reducing fraud and mismanagement.
What are the key features of ERISA?
ERISA requires plans to provide participants with plan information including important information about plan features and funding; sets minimum standards for participation, vesting, benefit accrual and funding; provides fiduciary responsibilities for those who manage and control plan assets; requires plans to …
What is the main purpose of the ERISA?
ERISA protects the interests of employee benefit plan participants and their beneficiaries. It requires plan sponsors to provide plan information to participants. It establishes standards of conduct for plan managers and other fiduciaries.
What does ERISA protect?
The term Employee Retirement Income Security Act (ERISA) refers to a federal law that protects the retirement assets of American workers. The law, which was enacted in 1974, implemented rules that qualified plans must follow to ensure that plan fiduciaries do not misuse plan assets.
What is an ERISA covered retirement plan?
ERISA’s rules cover most private-sector, employer-sponsored retirement plans, like 401(k)s, pensions, profit-sharing plans and individual retirement accounts (IRAs) offered by employers, such as SEP IRAs and SIMPLE IRAs.
What is the main objective of the Employee Retirement Income Security Act quizlet?
The Employee Retirement Income Security Act; The main purpose of ERISA is to protect the interests of employees (and their beneficiaries) who are enrolled in employee benefit plans, and to ensure that employees receive the pensions and group-sponsored welfare benefits that have been promised by their employers.
What is income security?
Function 600 (Income Security) consists of programs that keep Americans healthy and safe, separated into six categories: general retirement and disability insurance; federal employee retirement and disability (including military retirement); unemployment compensation; housing assistance; nutrition assistance; and other …
What is an employee benefit plan under ERISA?
An “Employee Welfare Benefit Plan” [ERISA § 3(1); DOL Reg. § 2510.3-1] is. Any plan, fund, or program established or maintained by an employer or by an employee organization, or by both, which provides any of the following benefits, through insurance or otherwise. health insurance. group life insurance.
Which type of retirement plan allows employees to contribute to their own retirement quizlet?
Under a SEP plan, an employer sets up individual retirement accounts (IRAs) for each participating employee. The employer makes contributions to these accounts on behalf of the employee. These contributions into an employee’s SEP are not included in the employee’s gross income.
Does ERISA apply to governmental plans?
In general, ERISA does not cover group health plans established or maintained by governmental entities, churches for their employees, or plans which are maintained solely to comply with applicable workers compensation, unemployment, or disability laws.
What is the difference between ERISA and non-ERISA plans?
In an ERISA plan, an employer chooses the investment options, controls the deposit and timing of employee contributions and may also provide an employer matching contribution. In a non-ERISA plan, an employer is not involved except in compliance activities.