The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for most voluntarily established pension and health plans (Employee Benefit Plans) in private industry to provide protection for individuals in these Employee Benefit Plans.
ERISA does not require any employer to establish a Employee Benefit Plans. It only requires that those who establish Employee Benefit Plans must meet certain minimum standards.
ERISA requires plans to provide participants with Employee Benefit Plans information including important information about Employee Benefit Plans features and funding; sets minimum standards for participation, vesting, benefit accrual and funding; provides fiduciary responsibilities for those who manage and control plan assets; requires Employee Benefit Plans to establish a grievance and appeals process for participants to get benefits from their Employee Benefit Plans; gives participants the right to sue for benefits and breaches of fiduciary duty; and, if a defined benefit plan is terminated, guarantees payment of certain benefits through a federally chartered corporation, known as the Pension Benefit Guaranty Corporation (PBGC).
The Department of Labor REQUIRES that a 401K Employee Benefit Plans of 100 participants or more at the beginning of a Employee Benefit Plans year be audited by an Independent Public Accountant. If the Plan has more than 100 participants, it must file Schedule H to form 5500. If the Employee Benefit Plans has under 100 participants at the beginning of the Employee Benefit Plans year, it will file Schedule I Small Plan with its 5500 and forego the required audit. |
