ERISA (an acronym that stands for the Employment Retirement Income Security Act of 1974) is one of the most convoluted areas of law. Simply stated, ERISA is the law that governs an employee’s benefits. For example, ERISA governs your rights under your pension (defined benefit plan), 401(k) (defined contribution plan), disability insurance, some severance benefits, parts of your healthcare benefits, certain executive compensation benefits, various stock option plans, and a plethora of other employee benefits. While the law governs an employee’s benefits, it also sets standards that employers must follow when providing these benefits. For example, it governs what an employer must disclose to an employee about their benefits, when an employer can change their benefits, and when an employee is entitled to their benefits. Some of the most common things ERISA governs are: 1. It governs what happens to your pension when an employer goes bankrupt or cannot afford to make your pension payments. 2. It demands employers, plan sponsors, and plan administrators hold themselves to the highest duty known under the law when dealing with an employee’s benefits. The standard comes from trust law, and is typically referred to as the “fiduciary duty standard of care.” 3. It requires disclosure of plan documents, change of benefits, or change of policy terms. 4. It sets standards for when an employee’s benefits “vest.” Lawyers who do not regularly practice ERISA law will tell you -- like tax law -- it is not an area you dabble in. It is a difficult and complex area of the law, and it is important to hire an attorney who has experience in this specialty. Feldman, Fox & Morgado has lawyers who focus their practices in this area and are prepared to handle your questions and cases. To submit an ERISA question, request representation for you case, or if you wish to have one of our lawyers review your plan documents or company’s ERISA issues, please click here. |
