As employees, understanding our rights and benefits related to retirement plans is crucial. The Employment Retirement Income Security Act of 1974, commonly known as ERISA, plays a significant role in ensuring that employees receive the retirement benefits they deserve. The California ERISA Attorneys at Kantor & Kantor, LLP, help clients who filed an insurance claim that was denied. Let’s explore what ERISA is, how it impacts you, and whether it truly helps you secure your financial future.
What is ERISA?
The United States Department of Labor’s ERISA website states, “The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans.”
ERISA was enacted to protect the interests of employee benefit plan participants and their beneficiaries. The law sets minimum standards for pension plans in private industry, aiming to ensure that employees receive their promised benefits. ERISA covers a wide range of employee benefits, including retirement plans, health insurance, and disability benefits.
ERISA applies to private-sector employers and labor unions that sponsor benefit plans funded by employer contributions or employee salary reductions. It does not cover government-sponsored plans or those sponsored by religious organizations.
Numerous amendments to the original ERISA law expanded protections:
- The Consolidated Omnibus Budget Reconciliation Act (COBRA)
- The Health Insurance Portability and Accountability Act
- The Newborns’ and Mothers’ Health Protection Act
- The Women’s Health and Cancer Rights Act
- The Affordable Care Act
- The Mental Health Parity and Addiction Equity Act
These amendments have added benefits for policyholders and beneficiaries, but they also add layers of complexity when filing claims or appealing decisions.
Key Protections Under ERISA
How does ERISA and its current form protect you?
- Transparency and Disclosure: ERISA requires plans to provide participants with detailed information about their benefits and the plan’s funding. This includes having documents like the Summary Plan Description (SPD) that explain the plan’s features and rules. This transparency helps you make informed decisions about your retirement savings.
- Fiduciary Responsibility: One of the hallmarks of ERISA is the requirement that those who manage and control plan assets must act in the best interest of participants. This fiduciary duty helps ensure that your retirement funds are handled responsibly and ethically.
- Grievance and Appeals Process: ERISA mandates that plans establish a procedure for participants to file claims and appeal denials. If you’re facing a denied claim for retirement benefits, ERISA provides a structured process to challenge that decision, giving you a pathway to resolve disputes.
- Protection of Benefits: ERISA offers protection against the loss of benefits. For pension plans, it provides certain safeguards that help ensure you receive your retirement income even if a company faces financial troubles.
Does ERISA Help You?
The answer is a resounding yes! ERISA’s protections offer several advantages to you as a participant in an employer-sponsored retirement plan:
- Security: Knowing that there are regulations in place to protect your benefits can offer peace of mind. ERISA’s requirements for transparency and fiduciary responsibility ensure that your retirement assets are in good hands.
- Greater Access to Information: The requirement for comprehensive disclosures means you can access important information about your benefits, empowering you to make sound financial decisions regarding your retirement.
- Recourse: In the event that your claim is denied, you have a formal process to appeal and advocate for yourself, making it easier to navigate the often-complex world of retirement benefits.
California ERISA Lawyers
In a world where financial security in retirement is more critical than ever, understanding the Employment Retirement Income Security Act (ERISA) is key. This law provides essential protections that help beneficiaries like you navigate retirement plans with confidence and security.
If you have questions about how ERISA affects your specific situation or if you think your benefits are not being handled properly, Kantor & Kantor LLP recommends consulting with one of our experienced ERISA attorneys. ERISA law is extremely complex, so you should not try to handle your case alone. Talk to our team to find out how we can help you. Give us a call at 866-779-9638 for a free consultation now.
