What is one major requirement of the Employee Retirement Income Security Act (ERISA)?

The Employee Retirement Income Security Act (ERISA) is primarily designed to provide transparency and protection for employees regarding pension and health plans. Under ERISA, plans must provide participants with important information about plan features, funding, and their rights. It establishes minimum standards for the protection of individuals in these plans, giving employees more confidence and security in their retirement planning and health benefits.

The legislation mandates conditions such as regular reporting and disclosure requirements that must be met to ensure that employees are well-informed about their benefits. This emphasis on transparency is crucial because it helps employees understand their entitlements and hold plan administrators accountable. The act does not restrict the benefits provided to just full-time employees, nor does it permit employers to arbitrarily deny benefits. ERISA also covers both private-sector and some public-sector retirement and health plans, thus not limiting them exclusively to public sector workers.