A plan covered by ERISA is afforded a plan comprehensive federal oversight (Federal law preempts state law). Federal law limits punitive and other types of damages against the plan and the plans fiduciaries. For plans that are not covered by Title I of ERISA, they do not have the above distinction, therefore plan participants then … Continue reading WHAT ARE THE ADVANTAGES OF BEING AN ERISA PLAN?
So long as the information that is required to be in the SPD is included, a single document can be used as the Plan Document and SPD for simple welfare plans. Also there must be some verification that the company formally adopted the plan, this is usually achieved with a signature page signed by an … Continue reading CAN A SINGLE DOCUMENT BE USED BY A PLAN DOCUMENT AND SPD?
“Reporting and disclosure” is a key focus of Title I of ERISA. ERISA, ensures that each participant of a benefit plan is informed of information about their right and obligations under the plan. The SPD explains to employees what they have to do to receive benefits, the criterion by which they can receive or lose … Continue reading WHAT IS AN SPD?
A definition for what constitutes a “plan” for purposes of Title I have not been provided by Title I of ERISA, or the regulations. Commonly a plan must cover at least one employee and must be established or maintained by an employer or employee organization. Welfare plans are classified as plans, funds, or programs that … Continue reading WHAT IS A BENEFIT PLAN?
Plans that are excluded under ERISA include: (1) governmental plans (2) church plans (3) plans maintained solely for complying with workers’ compensation or disability insurance laws (4) plans maintained outside of the U.S. for the benefit of non-resident aliens, and (5) excess benefits plans. Other types of plans have been excluded by several ruling issued … Continue reading WHICH PLANS ARE NOT COVERED UNDER TITLE I OF ERISA?
Plans that are covered by ERISA includes (1) an employee benefit plan (2) established or maintained by an employer or employee organization representing employees (3) engaged in commerce or in any industry or activity that involves commerce.
The Employee Retirement Income Security Act of 1974 (ERISA), was passed on September 2, 1974 and went into effect January 1, 1976. The act applies to retirement and welfare plans. ERISA is administered by the Employee Benefits Security Administration (EBSA). Along with EBSA several groups have the statutory and regulatory authority to enforce the provisions … Continue reading WHAT IS ERISA?