The idea of working well past the age of retirement might be appealing to some workaholics, but most people in Tennessee already have a vision of the retirement they would one day like to enjoy. These retirement plans often hinge on savings, pensions and other retirement benefits. The Employee Retirement Income Security Act of 1974 -- ERISA -- helps protect those retirement assets in a number of different ways.
Part of the fiduciary duties of the administrators of an employee retirement fund is to maintain documentation related to the plan. Those who file plan reports are responsible for holding on to all records that verify the accuracy and thoroughness of plan transactions. In other words, if a Tennessee participant, the IRS or the U.S. Department of Labor has questions about compliance with the Employee Retirement Income Security Act, or ERISA, the plan administrator must be able to demonstrate that compliance with the appropriate paperwork.
Employees in Tennessee who have health insurance or other benefits through their employers may feel comfort in knowing those benefits are under the protection of the Employee Retirement Income Security Act. While not all such programs qualify for ERISA protection, those that do must maintain strict standards in administering the plans, including keeping participants informed of any changes and seeking the best interests of the beneficiary over those of the employer. Additionally, ERISA protects plan participants from any kind of discrimination.
When the Employee Retirement Income Security Act went into effect in 1974, its purpose was to protect workers whose employers voluntarily provided benefits such as health insurance and retirement plans. ERISA never required businesses to supply this coverage for employees, but the law mandated minimal standards to ensure employers did not take advantage of their workers. In Tennessee and across the country, employees have peace of mind knowing their benefits are in place and that they have recourse if a plan fiduciary breaches his or her duty.
Not every employer is required to offer benefits beyond a salary. For example, no federal law mandates that a Tennessee business owner must provide a retirement plan or health insurance, but many do so as a way to entice good workers to remain faithful. Once an employer offers these benefits, however, federal law applies. This complex law falls under the governance of the U.S. Department of Labor and is called the Employee Retirement Income Security Act, or ERISA.
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.