Fewer Tennessee employees remain at one job for a lifetime as in generations past, so having a growing retirement plan is a good incentive to remain faithful to one company. However, devoting years to a company only to find one's retirement plan has been mismanaged can be a devastating blow. Understanding the Employee Retirement Income Security Act, also known as ERISA, is a good way to know whether one's plan is safe from unethical or incompetent management.
Employee retirement plans are meant to provide financial security for those who invest in them. Depending on the type of plan, there may be numerous benefits, including tax breaks and ease of savings by having contributions and fees deducted directly from one's paycheck. As with any investment, there is a measure of trust that those charged with managing the funds will act in an upright manner, and the Employee Retirement Income Security Act, also known as ERISA, sets guidelines for the ethical administration of plans.
Over 90 percent of those polled in Tennessee and across the country agree that a financial advisor should act in the best interests of his or her clients just as a doctor or lawyer does. Physicians and attorneys take oaths promising to uphold the best interests of those who entrust them with their medical or legal issues, but financial advisors do not. Because an appellate court recently overturned the Department of Labor attempts to clarify the role of advisors under the Employee Retirement Income Security Act, also called ERISA, many may wonder how to protect themselves.
When a Tennessee employer offers a job to a qualified candidate, the candidate's motivation for considering the position certainly relates to the salary the employer offers. However, the deciding factor is often the benefits package. Besides paying Social Security and federal insurance, private, non-government businesses with fewer than 50 employees are not required by law to offer benefits beyond workers' comp, family and medical leave, and unemployment insurance. If employers choose to provide more, they must abide by the rules under the Employee Retirement Income Security Act, known as ERISA.
When a Tennessee employee loses his or her job, among other concerns may be the loss of health care benefits, especially if the worker's family is also covered through the employer-based insurance policy. Through the Consolidated Omnibus Reconciliation Act, workers have the option of continuing their benefits after a job loss or other event that results in the termination of coverage. One company in another state is facing a lawsuit for violating the Employee Retirement Income Security Act, or ERISA, when it denied workers the option to refuse the COBRA coverage.
Wells Fargo seems determined to rebuild the trust it believes its clients once had. This monumental effort comes following reports that the bank administration forced its sales team to perform illegal and unethical practices, jeopardizing the wealth of many in Tennessee and across the country. Recently, however, new reports are emerging that the bank has violated its fiduciary duties under the Employee Retirement Income Security Act, also known as ERISA.
The Employee Retirement Income Security Act requires employers to follow minimum guidelines when they establish pension or health plans for their workers. Employees are not obligated to offer such plans, but a plan that provides retirement funds for its workers is likely protected under ERISA. Tennessee employees may be interested in the recent appeals court ruling that further defined the types of plans that may or may not fall under the protection of the federal law.
Often, people preparing to make crucial decisions about their retirement investments seek the advice of their insurance agents and stockbrokers before diving into an investment plan. Traditionally, agents and brokers are in business to sell products to their clients. This is in contrast to those working as investment advisors, who, under the Employee Retirement Income Security Act of 1974, are required to seek only the best interests of their clients. Tennessee brokers and insurance advisors may be rejoicing in a recent appeals court ruling that upheld the original ERISA concept of a fiduciary.
For many who have benefit plans through employers, the results of a recent study may bring shock and fear, especially for those who are nearing retirement. It seems that, in more than half of the cases, no one is minding the store. In other words, those whose duties are to oversee and protect retirement plans and investments covered by the Employee Retirement Income Security Act of 1974 (ERISA) do not know they are fiduciaries. Tennessee participants may want to examine their benefits to see who is monitoring their plans.
Many who retire with 401(k) plans or other Tennessee employer-established pension plans feel confident in the administration of those plans when they are under the protection of the Employee Retirement Income Security Act of 1974. This federal law, known as ERISA, requires employers who voluntarily offer retirement or health benefits to follow specific regulations regarding the fiduciary management of the plans. This is to ensure the participants' best interests are protected and there are no conflicts of interest that could jeopardize their potential profits.