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Three things to know about ERISA

On Behalf of | Nov 16, 2022 | ERISA |

The Employee Retirement Income Security Act, or ERISA, ensures that hard-working adults have financial stability in retirement. The act has specific guidelines that all employers must follow.

Employees must ensure they know their rights under ERISA to be sure they’re getting what they’re due. Here are three essential points to remember.

#1: Certain limitations exist on eligibility

ERISA applies to most businesses in this country. This includes corporations, limited liability companies and partnerships. Religious organizations usually don’t have to comply with the ERISA regulations.

Small businesses are sometimes able to make adjustments to how they can comply. For example, SIMPLE IRAs are one option for a small business with no more than 100 employees.

#2: There are standards for financial growth and security

ERISA standards set expectations for benefit accrual, vesting and other financial aspects of the funds established under ERISA. There are also certain limitations on how long employees must work before being eligible for benefits.

#3: It often covers health plans

Many health insurance plans are covered under ERISA. One of the critical points to this is that employers must provide details about the programs they offer, including the plans’ costs, the benefits offered and coverage eligibility.

Employers with at least 50 employees have more requirements, such as being unable to deny coverage because of a preexisting condition.

Any employee who believes an employer is violating their rights under ERISA should make sure that they fully understand their legal rights and options. Those in this situation may be able to take action to get the benefits they expect and need.