Overview of The Employee Retirement Income Security Act

533 Words Feb 5th, 2018 2 Pages
This legislation spells out certain requirements regarding information that retirement plan administrators must provide the participants and beneficiaries so that they can make pertinent decisions or take steps to safeguard their retirement savings, and also places certain guidelines and limitations on the conduct of managers of pension and retirement plans (USDOL, 2012). Government reporting standards and measures to ensure the protection of and proper access to retirement funds are also part of the legislation (USDOL, 2012). The legislative history of ERISA can in some ways be traced back to the Revenue Acts of 1921 and 1926, which set tax rules regarding the deductibility of pension contributions and the growth of pension fund's portfolios and thus encouraged pension planning while also establishing some degree of regulation by the IRS (USDOL, 2012). The Revenue Act of 1942 increased regulation and placed stricter requirements on pension plans in order for them to receive these tax benefits, and the Welfare and Pension Plans Disclosure Act of 1959, amended in 1962 brought pensions under he purview of the…