Employee Retirement Income Security Act of 1974

Applicable-

• Those who are 21 years of age
• Employee for the last 12 month and worked for 1000 hours

ERISA Records

Three types of records

1. Summary Plan Description

• Inform about Provision policy and rules of the plan
• Inform about the plan sponsor, administrator and trustees
• Financial sources
• Eligibility
• Disqualifying events
• Claim procedure

2. Annual Report

• Gives financial statements
• No of employees under the plan
• Name and address of the plan fiduciary
• Person compensated in previous years and the amount compensated

3. Report to Participants

• Gives total benefit details
• Gives the details of the amount accrued for the individual and the amount that is not forfeitable

Records maintained

• Records need to be maintained upto 6 years

Vesting –There are 2 types of vesting

• Immediate- 100% is vested when the eligibility is met
• Delayed – could be either cliff or graded .In cliff participants get 100% after specified years . In Graded –Partial vesting is done each year upto the specified years.
  

Enforcement and Jurisdiction

• Department of labour
• Internal revenue Services
• Pension benefit guaranty corporation