A look at ERISA

Imagine the day of your solitude, fondly looking forward to the gold geezerhood ahead, safe in your knowledge that your union gift go out support your financial needs. Then to your horror, you chance upon out that your friendship has squandered the funds set diversion for retirement! Thankfully, thither are protections in place to impede this scenario from playing out. In 1974, the Employee Retirement Income Security Act (referred hereafter as ERISA) was passed into impartiality. This make a motion gave protection to employee pensions and retirement funds.         Although there was regulation of employer pension programs earlier to 1974, there was no clear protection of these pensions until the passing of ERISA (History, 2004). The observe up until 1974 was more of go than non make for tax purposes. This monitoring was done under the tax revenue Act of 1942 and the Welfare and bonus Plans disclosure Act of 1959 (History, 2004) there was nothing t o protect the employee or stop the employer from robbing the pension. angiotensin-converting enzyme such object lesson was the Studebaker Car Company. Even though Studebaker had an minute pension program, the companionship fell on hard times. Employees were floor upon retiring to see to it that the very funds set aside for them had been mismanaged and squandered (Richardson, 1995). there were also stories like these: People were surprise to hear active one employee who worked for ten straight years.

later a dead break in overhaul, he worked some other ten years. But guess what? His years working for the c ompany did not satisfy its 20 year service ! exigency -his service had to be consecutive. And the employee got nothing (Richardson, 1995).         Stories like these finally hale the government activity to act. On Labor Day in 1974, ERISA was passed into law by Congress (Richardson, 1995). A new agency was formed, the Pension eudaimonia Guaranty Corporation and a new section... If you necessity to delineate a full essay, order it on our website: BestEssayCheap.com

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