ERISA (Employee Retirement Income Security Act)

The Employee Retirement Income Security Act of 1974, or ERISA, is the federal law that governs most retirement and health plans offered by private employers. The U.S. Department of Labor says it sets minimum standards for most voluntarily established retirement and health plans. It does not require employers to offer plans; it regulates the ones they choose to offer. Government plans and most church plans are excluded.

ERISA requires plans to give participants information about plan features and funding, sets rules for participation and vesting, imposes fiduciary duties on the people who manage plan money, and requires a claims and appeals process. ERISA section 502(a), codified at 29 U.S.C. 1132, lets participants sue to recover benefits due under the plan and to hold fiduciaries accountable for breaches.

ERISA drives two big categories of cases. First, individual benefit denial lawsuits, including many long-term disability and health claim denials. These cases usually require exhausting the plan's internal appeal first, and courts often review only the claim file, so what you submit on appeal matters enormously. Second, class actions against 401(k) and pension plan fiduciaries, alleging excessive fees, poor investment choices, or misuse of forfeited funds. COBRA notice cases are also brought under ERISA.

ERISA also preempts many state law claims involving employer plans, which can limit the damages available. If your benefits were denied, request your complete claim file and plan documents in writing and calendar the appeal deadline. Our long-term disability denial page explains the process.