What is the primary function of ERISA?

The primary function of ERISA, the Employee Retirement Income Security Act, is to protect the interests of employee benefit plan participants. This federal law was enacted to ensure that employees are provided with adequate information regarding their benefits and to establish standards for the fiduciary responsibility of those managing plans. ERISA mandates disclosure of financial and other plan information to participants, protects plan participants from mismanagement of their benefits, and grants them the right to sue for benefits and breaches of fiduciary duty.

Through these protections, ERISA plays a crucial role in safeguarding the benefits that workers earn and ensuring the integrity of employer-sponsored benefit plans, whether for retirement, health care, or other benefits. This emphasis on participant protection is what distinguishes ERISA from other potential functions, such as limiting contributions or managing costs, which are not the primary objectives of the legislation.