Employee Retirement Income Security Act (ERISA)

In Detail

ERISA is the foundational federal law governing private-sector retirement plans in the United States. Enacted in 1974 after several high-profile pension failures, it established minimum funding standards, fiduciary duties for plan managers, participant rights to information, and created the PBGC as a backstop insurer. ERISA requires plan sponsors to file annual Form 5500 reports with the Department of Labor, detailing plan finances, investments, and participant counts — this data is a primary source for PensionWatch. The law also sets vesting requirements (employees must be fully vested after no more than 3-7 years of service), establishes rules for when plans can be amended or terminated, and gives participants the right to sue for benefits.

Critically, ERISA does not apply to government plans (federal, state, or local) or church plans, which operate under separate rules. This means public pension participants lack many of the protections available to private-sector workers, including PBGC insurance coverage. ERISA preempts state laws that relate to employee benefit plans, creating a uniform national framework for private pensions.