United States 1974

Synopsis

Most laws relating to private sector pensions in the United States are contained in one of two federal statutes: the Internal Revenue Code and the Employee Retirement Income Security Act (ERISA). ERISA was passed in 1974 and has been amended several times. Although ERISA deals with so-called employee welfare plans, including health plans, pension regulations make up the bulk of the law.

ERISA does not require an employer to establish a pension plan, nor does it dictate actual pension benefits. It does, however, subject established pension plans to numerous legal requirements, mainly to ensure that pension plans are used for employee retirement benefits and not exploited by employers. The law is thus part social insurance, part tax law, and part business regulation. ERISA is implemented by several different federal agencies, some of which were created by ERISA itself...