MyCo Glossary · US HR & Payroll

ERISA: The Law Governing Employee Benefit Plans

ERISA (Employee Retirement Income Security Act) is the federal law that sets minimum standards for most private-sector retirement and health benefit plans, protecting participants through reporting, disclosure, and fiduciary rules.

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.

Related terms

COBRA →ACA →EPLI →FICA →

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FAQs about ERISA

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.

How does MyCo support benefit compliance?

MyCo integrates with benefits brokers and keeps the records and payroll deductions that ERISA-covered plans rely on.