DRDA CPA

Contact Us @ 281-488-2022
Email Us @
info@drdacpa.com
  • Home
  • Who We Are
  • Services
  • Business Solutions
    • DRDA, LLC Payroll
    • Retirement Plan Solutions
    • Employee Benefits
    • Health Care
    • HR Consulting Services
    • Corporate Transparency Act – Beneficial Owners Information Reporting
    • Employee Retention Credit
  • ERISA Bond
  • Join the Team
  • Client Access
    • Client Portal
    • DRDA Payment
      • Pay an invoice
      • Pay over time with interest
      • Retainer Pay
  • Client Resources
    • FAQ
    • FAQ PORTAL
    • PORTAL HELP
    • MSO FAQ
    • YETP FAQ
  • Blog
    • Blog
    • Culture
  • Newsletter
    • Newsletter
    • Annual Tax Letter 2023
  • Home
  • Blog
  • ROBS 401(k)
  • What is ERISA and how does it benefit your business?

What is ERISA and how does it benefit your business?

by DRDA LLC / Thursday, 08 June 2023 / Published in ROBS 401(k), Uncategorized

By: Agustin Muniz

Employee Retirement Income Security Act (ERISA)

The Employee Retirement Income Security Act (ERISA) is a significant federal law that sets standards for employee benefit plans offered by private employers. Enacted in 1974, ERISA aims to protect the rights and interests of employees who participate in retirement plans, health insurance programs, and other welfare benefit plans. ERISA was enacted to establish minimum standards for employee benefit plans to safeguard the financial security and welfare of employees. It applies to private-sector employers that offer employee benefit plans, including pension plans, 401(k) plans, health insurance plans, and other welfare benefit plans. ERISA does not cover government plans, church plans, or plans maintained outside the United States for non-resident aliens.

One of the central aspects of ERISA is the imposition of fiduciary standards on those who manage and control employee benefit plans. Fiduciaries, such as plan administrators, trustees, and investment managers, are legally obligated to act in the best interests of the plan participants and beneficiaries. They must exercise prudence, loyalty, and diligence in managing the plan and its assets. ERISA mandates various reporting and disclosure requirements to ensure transparency and accountability in employee benefit plans. Employers are required to provide plan participants with essential information, including plan features, funding mechanisms, investment options, and potential risks. This includes distributing Summary Plan Descriptions (SPDs), Summary Annual Reports (SARs), and other disclosures to participants. ERISA includes provisions that protect employees’ rights to their accrued benefits. The law establishes rules for vesting, which determines when employees become entitled to receive their full pension benefits. Additionally, ERISA created the Pension Benefit Guaranty Corporation (PBGC), a federal agency that provides a safety net by insuring certain pension benefits in case of plan termination.

ERISA provides mechanisms for enforcing compliance and addressing fiduciary breaches or plan violations. The law grants authority to the Department of Labor (DOL) to oversee and enforce ERISA provisions. Participants and beneficiaries also have the right to bring lawsuits to enforce their benefits and seek remedies for fiduciary breaches or other violations of ERISA.

ERISA has had a profound impact on employee benefit plans and the retirement landscape in the United States. It has helped establish standards of conduct for fiduciaries, promote transparency in plan administration, and provide avenues for legal recourse in case of misconduct. ERISA has also facilitated the growth of retirement savings plans like 401(k) plans, providing individuals with tax advantages and investment opportunities to build their retirement nest eggs. The Employee Retirement Income Security Act (ERISA) serves as a crucial framework for regulating private-sector employee benefit plans, ensuring the protection of employees’ rights and interests. By establishing fiduciary responsibilities, reporting requirements, and benefit security measures, ERISA promotes transparency, accountability, and the long-term financial security of plan participants. Understanding the key provisions of ERISA is essential for both employers and employees to navigate the complex landscape of employee benefits effectively.

For more information on ERISA and how DRDA, LLC can help please click here.

  • Tweet

What you can read next

RE-INVENTING YOUR BUSINESS AMID COVID-19
The second stimulus package has been signed by President Trump
Social Security: Current Status and Challenges

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Clearing Myths about ROBS with DRDA’s BORSA® Plan:
  • In the world of business entities
  • Tax Manager

ABOUT US

DRDA, LLC is a proactive CPA firm offering guidance and support so you can achieve your business and financial goals.

CONTACT US

  • PRIVACY POLICY
  • CLIENT ACCESS

281-488-2022

Houston Office
1120 Bay Area Blvd.
Houston, TX 77058

office@kallyaslawyer.com

Subscribe to our Newsletter

#subscibe-to-our-newsletter

Subscribe to OUR Newsletter

ggi logo
DRDA, PLLC BBB Business Review
  • Home
  • Who We Are
  • Services
  • Business Solutions
    • DRDA, LLC Payroll
    • Retirement Plan Solutions
    • Employee Benefits
    • Health Care
    • HR Consulting Services
    • Corporate Transparency Act – Beneficial Owners Information Reporting
    • Employee Retention Credit
  • ERISA Bond
  • Join the Team
  • Client Access
    • Client Portal
    • DRDA Payment
  • Client Resources
    • FAQ
    • FAQ PORTAL
    • PORTAL HELP
    • MSO FAQ
    • YETP FAQ
  • Blog
    • Blog
    • Culture
  • Newsletter
    • Newsletter
    • Annual Tax Letter 2023

© 2023 DRDA, PLLC ALL RIGHTS RESERVED.

TOP
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
SettingsAccept
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are as essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT
Verified by MonsterInsights