Retirement Income Security Act

The Retirement Income Security Act (ERISA), enacted in 1974, is a federal law that sets standards to protect individuals participating in employer-sponsored retirement plans, such as pensions and 401(k)s. It ensures plans are managed responsibly, provide accurate information, and fund promised benefits appropriately. ERISA's goal is to safeguard employees' retirement savings from mismanagement or fraud, enhancing trust in employer-sponsored retirement benefits while establishing rules for plan administrators and requiring transparency and accountability.