A federal law passed in 1974, the Employee Retirement Income Security Act, or ERISA, works to protect the security of pension plans created for employees by private industry employers. Generally speaking, the law does not cover government-run plans, nor does it cover plans established for the staffs of religious institutions. While companies are not required to establish pension plans, those that do must follow the rules of management set out in ERISA.

1. The History and
Significance of ERISA
by Steven M. Ziegler

2. ERISA
A federal law passed in 1974, the
Employee Retirement Income Security Act,
or ERISA, works to protect the security of
pension plans created for employees by
private industry employers. Generally
speaking, the law does not cover
government-run plans, nor does it cover
plans established for the staffs of religious
institutions. While companies are not
required to establish pension plans, those
that do must follow the rules of
management set out in ERISA.

3. ERISA
ERISA does not set a base standard for employee
benefit pay. It does, however, mandate that
employers give their pension plan enrollees
certain information that includes details of the
plan’s funding and its features. In addition, the
law establishes basic standards for matters
affecting vesting, plan participation, and
accumulation of benefits. It requires that all
fiduciary personnel (defined as those who hold
discretionary positions over plan assets) be held
accountable to plan participants, and it supports
the right of participants to file suit. Finally, ERISA
guarantees certain benefits if a pension is
“orphaned,” or abandoned by the funding
company, for example, in the case of bankruptcy.

4. About the author
The Law Offices of Steven M. Ziegler P.A.
served clients throughout South Florida
and beyond from 1984 to 2011, when Mr.
Ziegler accepted a position as Senior Vice
President and General Counsel with
AvMed, Inc. He has three decades of
experience as counsel to managed care
companies and has handled cases that
incorporate multiple aspects of ERISA and
other federal laws and regulations.