The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for many employer-backed employee benefits programs. You may be wondering: What types of plans are subject to the requirements of ERISA? Here, our Chicago ERISA lawyers answer the questions by providing an overview of different types of plans that fall under the law.
For many employees in Illinois and throughout the United States, a disability insurance plan is a key part of their overall benefits package. These plans provide income replacement for employees who cannot work due to a disability. A disability plan may be provided as a standalone benefit or as part of a larger benefits package. ERISA covers the full range of employer-backed disability plans, including short-term disability policies and long-term disability policies.
Many types of employer-backed retirement plans fall under ERISA. Indeed, Retirement plans, such as 401(k) plans, pension plans, and profit-sharing plans, are subject to ERISA. These plans are designed to provide financial support for employees during their retirement years. Employers may sponsor these plans, and they may be funded by employee contributions, employer contributions, or a combination of both. Retirement plans are required to meet certain standards set forth by ERISA, including providing participant disclosures and funding requirements.
A life insurance policy can provide much-needed financial protection to a family in a time of need. Life insurance policies provided by an employer as a benefit to their employees are subject to ERISA. These policies may be provided as a standalone benefit or as part of a larger benefits package. Employer-provided life insurance policies are typically group policies, and the employer is the policyholder. Examples of employer-provided life insurance policies include term life insurance and whole life insurance.
Health plans, such as health savings accounts (HSAs), health reimbursement arrangements (HRAs), and group health plans, are also subject to ERISA. These plans provide medical coverage for employees and their dependents. Employers may sponsor these plans, and they may be funded by employee contributions, employer contributions, or a combination of both. Health plans are required to meet certain standards set forth by ERISA, including providing participant disclosures and funding requirements.
At Bartolic Law, our Chicago ERISA lawyer is a nationally recognized expert in the field. If you have any specific questions or concerns about an ERISA claim or ERISA appeal, we are here to help. Call us now or connect with us online to arrange your fully confidential initial appointment. From our Chicago law office, we provide ERISA representation throughout the wider region.