What does the Employee Retirement Income Security Act (ERISA) establish?

The Employee Retirement Income Security Act (ERISA) primarily establishes minimum standards for pension plans in private industry. This legislation was enacted to protect the interests of employee benefit plan participants and their beneficiaries by implementing measures that ensure plans are set up and maintained in a fair and financially sound manner. Among its key provisions, ERISA sets requirements for the disclosure of plan information to participants, establishes fiduciary standards for plan managers, and mandates the establishment of a claims and appeals process for participants.

While minimum standards for employee health plans are indeed addressed under ERISA, the act is more broadly recognized for its focus on pension and retirement plans. Therefore, while guidelines for compensation strategy and regulations on stock options may be related to employee benefits planning, they are not central to what ERISA is known for establishing.