ERISA: The Law Governing Employee Benefit Plans
What ERISA regulates
ERISA governs most private-sector employee benefit plans, including:
- 401(k) and pension (retirement) plans
- Group health, dental, and vision plans
- Disability and certain welfare benefit plans
It does not cover government or most church plans.
Fiduciary responsibilities
Plan fiduciaries must act solely in participants' interest, manage the plan prudently, diversify investments, and follow plan documents. Breaches carry personal liability.
Reporting and disclosure
ERISA requires plans to provide a Summary Plan Description (SPD) to participants and, for many plans, file an annual Form 5500 with the Department of Labor.
Participant protections
ERISA gives participants rights to information, a claims-and-appeals process, and the ability to sue for benefits or breaches of fiduciary duty.
For employers, the practical side of ERISA is recordkeeping and accurate benefit deductions every pay period. See how MyCo's payroll management keeps those deductions and records clean, or run the numbers with our payroll calculator.
Related terms
COBRA →ACA →EPLI →FICA →Payroll Management →
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What does ERISA stand for?
Employee Retirement Income Security Act — the federal law setting standards for most private-sector retirement and health benefit plans.
Does ERISA cover health plans?
Yes. ERISA covers most private-sector group health plans as well as retirement plans like 401(k)s.
What is Form 5500?
An annual report many ERISA plans must file with the Department of Labor disclosing plan financials and operations.
Who regulates 401(k) plans?
401(k) plans are regulated primarily under ERISA, enforced by the US Department of Labor (Employee Benefits Security Administration) and the IRS, which oversees tax qualification.
How does MyCo support benefit compliance?
MyCo integrates with benefits brokers and keeps the records and payroll deductions that ERISA-covered plans rely on.