ERISA (Employee Retirement Income Security Act) signed in to law in 1974. The primary intent of the law was to provide employee safeguards against abuse if you were a covered participant in a defined benefit pension plan.
But the law also extends to certain health and welfare plans including union multi-employer welfare plans and self funded employer group plans.
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Usually when group benefits are involved, ERISA is involved as well. In simplest terms ERISA is simply a "did you bring gum for everybody" law. Employees in the same "class" must be treated equally when it comes to group benefits where an employer takes a tax deduction.
If the employer wants to write off the cost of providing a benefit, they must provide a consistent set of rules that do not exclude employees within a certain class from participating. Simply if you do it for one employee within a class, you do it for all within the class.
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But the law also extends to certain health and welfare plans including union multi-employer welfare plans and self funded employer group plans.
If the employer wants to write off the cost of providing a benefit, they must provide a consistent set of rules that do not exclude employees within a certain class from participating. Simply if you do it for one employee within a class, you do it for all within the class.