ERISA stands for the Employee Retirement Income Security Act of 1974. While it’s often associated with retirement plans, it also governs most employer-sponsored health and welfare benefit plans, including:
-
Medical, dental, and vision plans
-
Health FSAs and HRAs
-
Group life and disability insurance
-
Some wellness programs
ERISA is a federal law that sets standards for plan administration, disclosures, fiduciary responsibilities, and participant rights. It was designed to protect employees by ensuring plan transparency and accountability.
🏢 Who Must Comply?
ERISA applies to most private-sector employers, including corporations, partnerships, and nonprofits that offer benefit plans.
Government entities and churches are generally exempt.
🧠 Key ERISA Requirements for Health Plans:
-
Provide a Summary Plan Description (SPD) to participants
-
Maintain a formal plan document
-
Operate plans in the best interest of participants
-
Distribute required notices and disclosures
-
File Form 5500 (if applicable, usually for plans with 100+ participants)