ERISA, which stands for the Employee Retirement Income Security Act, is a federal law that sets standards for employer-sponsored retirement and health plans. Its intention is to protect the assets of millions of Americans so that funds placed in retirement plans during their working lives will be there when they retire.
If you suspect your employer is not following ERISA guidelines, it is important to be aware of the signs.
1. Lack of plan documents
One sign that your employer may not be following ERISA guidelines is if they fail to provide plan documents. ERISA requires employers to give employees information about their retirement and health plans, including details about benefits and how to file claims.
2. Irregular contributions
If your employer consistently makes irregular contributions to your retirement plan, it could be a red flag. ERISA requires employers to make timely contributions to employees’ retirement accounts. Failure to do so may indicate non-compliance with ERISA guidelines.
3. Unexplained deductions
Keep an eye out for unexplained deductions from your paycheck related to your benefits. ERISA mandates that employers clearly communicate any deductions made for retirement or health plans and provide detailed explanations.
4. Lack of fiduciary responsibility
Employers have a responsibility to manage retirement and health plans in the best interest of their employees. If your employer fails to act in your best interest or makes decisions that benefit the company over its employees, it may indicate a violation of ERISA guidelines.
5. Failure to provide required notices
ERISA requires employers to provide employees with certain notices about their benefits, such as summary plan descriptions and annual reports. If your employer fails to provide these required notices or provides incomplete or inaccurate information, they may not be following ERISA guidelines and could face penalties.
If you notice any of these signs, protect yourself by discussing your concerns with your employer or seeking guidance from a trusted source.
