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Breaking Down Federal ERISA Laws

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Posted By KSK Law | March 30 2023 | Workers Rights

The Employee Retirement Income Security Act (ERISA) is a crucial law that safeguards the rights of employees who are enrolled in employer-sponsored retirement, health, and welfare plans. Enacted in 1974, this federal statute provides a standard set of guidelines that employers must follow to ensure that their employees receive the benefits they are entitled to.

However, ERISA is a complex and intricate law that can be challenging for both employees and employers to understand. If you are unsure of your rights under ERISA—or whether your employer is upholding its responsibilities—it is important to consult with a Minneapolis workers’ compensation lawyer to discuss your next steps.

What Is the ERISA Law?

ERISA imposes fiduciary responsibilities on those responsible for maintaining certain employer-sponsored retirement and health plans. These may include defined-benefit plans and defined-contribution plans, such as 401(k) plans, 403(b) plans, employee stock ownership plans (ESOPs), and profit-sharing plans. ERISA also applies to certain private-sector health plans, including health maintenance organization (HMO) plans, flexible spending accounts (FSAs), disability insurance, and life insurance.

Fiduciary Duties under ERISA

ERISA defines a fiduciary as an individual who exercises discretionary authority or control over a plan’s management or assets, including those who provide investment advice. These individuals may include trustees, investment committees, and plan administrators.

Fiduciaries have a duty to act in the best interests of the plan participants and beneficiaries and are required to adhere to strict principles of conduct. If fiduciaries fail to fulfill their responsibilities, they may be held liable for restoring any losses to the plan. ERISA also prohibits the misuse of assets through its fiduciary provisions, ensuring that fiduciaries are held accountable for their actions.

Who Is Required to Follow ERISA Laws?

ERISA applies exclusively to private employers who offer benefits to their employees. Government employers are exempt from ERISA, as are private employers who do not provide these benefits. It is also important to note that ERISA only applies to employer-sponsored plans and does not affect insurance plans purchased privately by employees. 

ERISA Anti-Retaliation and Discrimination Rules 

In addition to fiduciary rules, ERISA has specific safeguards in place to prevent retaliation and discrimination. Under ERISA Section 510, employers cannot interfere with an employee’s benefits or retaliate against an employee for exercising his or her ERISA rights.

If an employer violates these provisions, the employee can pursue litigation and recover expenses that he or she incurred, as well as those incurred by his or her covered dependents. These claims typically involve employers who take illegal actions because they want to avoid liability or reduce their costs related to a retirement or health plan. 

Contact a Minnesota Employment Lawyer

ERISA is a complex law with many provisions that regulate how employers manage employee benefits plans. If you believe your employer has violated ERISA or you have questions about your rights under the law, it is important to speak with a Minneapolis ERISA lawyer as soon as possible.

An attorney can help you understand ERISA, assess your case, and determine whether you qualify for litigation against your employer. If your case proceeds, he or she can provide you with the guidance and representation you need to protect your best interests. Schedule a free legal consultation as soon as possible to discuss your situation and learn more about your legal options.

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