A look at ERISA

Imagine the day of your retreat, fondly looking forward to the luxurious geezerhood ahead, safe in your knowledge that your union reward go out support your financial needs. Then to your horror, you fall upon out that your friendship has squandered the funds set aside for retirement! Thankfully, thither are protections in place to foil this scenario from playing out. In 1974, the Employee Retirement Income Security Act (referred hereunder 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 largely make for tax purposes. This monitoring was done under the tax Act of 1942 and the Welfare and bonus Plans disclosure Act of 1959 (History, 2004) there was nonhing to protect the employee or stop the employer from robbing the pension. angio xsin-converting enzyme such grammatical case was the Studebaker Car Company. Even though Studebaker had an minute pension program, the friendship fell on hard times. Employees were floor upon retiring to pay back that the very funds set aside for them had been mismanaged and squandered (Richardson, 1995). at that place were also stories like these: People were surprise to hear around one employee who worked for ten straight years.

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

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