ERISA: Reflecting On 50 Years And Looking To The Future

Major milestones are a good opportunity to pause, reflect, and think about where we are heading. This year is a major milestone for the retirement industry as the Employee Retirement Income Security Act of 1974 (ERISA) reaches its 50^th anniversary today.

ERISA is the federal law that for the first time set important standards for most voluntarily established retirement and health plans in the private sector to protect individual participants and beneficiaries. Key provisions of ERISA require plans to provide participants with essential plan information; set minimum standards for participation, vesting, benefit accrual, and funding; establish fiduciary responsibilities for those who manage plan assets; and guarantee payment of benefits through the Pension Benefit Guaranty Corporation (PBGC) for terminated defined benefit pension plans.