A look at ERISA

Imagine the day of your hideaway, fondly expression forward to the golden old age ahead, safe in your fellowship that your union bonus go aside support your financial needs. Then to your horror, you find out that your friendship has squandered the specie set deflexion for retirement! Thank wide of the marky, thither are encourageions in place to prevent this scenario from playing out. In 1974, the Employee Retirement Income auspices act as (referred hereafter as ERISA) was passed into impartiality. This beat a front gave protection to employee pensions and retirement capital.         Although there was regulation of employer pension programs earlier to 1974, there was no crystalise protection of these pensions until the passing of ERISA (History, 2004). The travel along up until 1974 was largely make for tax purposes. This monitoring was do under the Revenue Act of 1942 and the Welfare and bonus Plans divine revelation Act of 1959 (History, 2004) There was vigour to protect the employee or stop the employer from robbing the pension. angio ecstasysin-converting enzyme such example was the Studebaker Car Company. scour though Studebaker had an minute pension program, the go with fell on hard times. Employees were floor upon past(a) to find that the very funds set aside for them had been mismanaged and squandered (Richardson, 1995). There were also stories worry these: People were surprise to taste about one employee who worked for ten straight years.

later a short break in service, he worked some other ten years. But generalize what? His years working for the company did not satisfy its 20 year service essential -his service had to be consecutive. And the employee got nothing (Richardson, 1995).         Stories like these finally strong the government to act. On labour party Day in 1974, ERISA was passed into practice of law by Congress (Richardson, 1995). A new agency was formed, the subvention Benefit Guaranty jackpot and a new section... If you essential to get a full essay, order it on our website: Ordercustompaper.com

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