What does ERISA stand for?

The correct answer, Employee Retirement Income Security Act, refers to a federal law enacted in 1974 aimed at protecting the retirement assets of workers in the United States. ERISA establishes minimum standards for pension and health plans in the private industry, ensuring that plan fiduciaries do not misuse plan assets and that participants receive accurate information regarding their benefits. Under ERISA, employees are entitled to certain rights, including the right to receive information about their plans, the right to fund their retirement savings, and the right to sue for benefits and breaches of fiduciary duty.

Understanding the purpose and implications of ERISA is crucial for compliance professionals, as it directly impacts the management of employee benefits, retirement plans, and the safeguarding of employees' rights in the context of their pension benefits.