The Employee Retirement Income Security Act (ERISA) is designed to protect your retirement assets. Without this, there could be a potential for fiduciaries to take advantage of plans, misusing or spending down funds.
Every employee who has an ERISA-covered plan should know the facts about it. That way, if any money goes missing or benefits are unavailable, they will know more about their legal rights.
There is a waiting period
If you have a disability, there is a waiting time between that injury and when you can receive your benefits. For most plans, you’ll need to wait for a few months before you can receive benefits. The exact amount of time varies, so you may want to reach out to the provider to learn more.
ERISA doesn’t cover every kind of retirement plan
If you’re not sure if ERISA covers your plan, it’s a good idea to reach out to your employer and attorney. In general, ERISA won’t cover government or church-related plans.
ERISA protects your retirement assets
The goal of the Employee Retirement Income Security Act is to protect your retirement assets. Rules have been established that any qualified plans must follow. These rules help prevent the plans’ fiduciaries from misusing assets.
ERISA also grants you a right to sue
With ERISA, employees gained the right to sue if they participated in a retirement plan and suffer as a result of a breach of fiduciary duty. Essentially, if your retirement plan is drained or you lose money because of a fiduciary’s errors or mistakes, you may have a right to sue.
If you have questions about your ERISA benefits, our website has more information you can read about.