What does the Employee Retirement Income Security Act of 1974 (ERISA) protect?

The Employee Retirement Income Security Act of 1974 (ERISA) primarily focuses on the management and protection of employee retirement benefits. This legislation establishes standards for pension plans in the private industry, ensuring that employees receive the benefits they are promised upon retirement. Specifically, ERISA was enacted to prevent the mismanagement of these retirement funds and to ensure that funds are secure and available for employees when they retire. This includes provisions that govern how plans must be funded, what information needs to be provided to participants, and the fiduciary responsibilities of plan administrators.

Understanding the primary features of ERISA helps clarify why employee retirement benefits from mismanagement are at the forefront of its purpose. It does not primarily deal with health benefits, employee wages, or union rights, which fall under different regulations and laws. Therefore, the emphasis of ERISA is on securing retirement benefits, making it crucial for employees to trust that their retirement plans are protected against potential mismanagement or financial instability.