The Employee Retirement Income Security Act (ERISA) established minimum guidelines to protect individuals with voluntary pension plans. Employers must follow federal standards if they offer pension plans, but completing federal ERISA regulation compliance can become difficult for inexperienced human resource managers. Luckily, employee benefit consultants can help by providing insight and experience to companies across the country.
ERISA does not require businesses to offer pension plans. However, companies that provide the plan must comply to the act's amendments. Participants must receive information describing the plan features, funding, control plan management options and the benefits grievance and appeals process. These allow recipients to make educated decisions regarding their pension plans, while ensuring companies are following the act's stipulations.
Amendments provide guidance to employers as they decide whether to offer voluntary pension plans. Businesses may benefit from understanding how factors such as employee medical conditions and loss of job may impact a participant's pension. Determining the value of offering voluntary pension plans forces employers to weigh the pros and cons.
ERISA employee benefit services can give companies valuable information to help them make their decisions.
