Employment Law Practice Exam

Regarding the Employee Retirement Income Security Act (ERISA), what is an accurate statement?

1. The law governs only pension plans.

2. The law governs benefit plans broadly, not just pension plans.

3. The law only applies to "welfare" plans.

4. None of these.

The correct answer is: The law governs benefit plans broadly, not just pension plans.

The statement that the law governs benefit plans broadly, not just pension plans is accurate because ERISA was designed to protect the interests of employees with regard to various types of benefit plans. While it certainly covers pension plans, it also encompasses a wide variety of employee benefits, including welfare benefit plans, health insurance, disability insurance, and life insurance. This broad applicability ensures that employees receive certain protections and that there is transparency and accountability regarding the management of these benefit plans. ERISA establishes guidelines for the administration of employee benefit plans and requires plans to provide participants with information about their benefits, establish grievance and appeals processes, and clarify the responsibilities of plan fiduciaries. This comprehensive approach reflects the intent of the legislation to safeguard the rights of workers and their families concerning various employee benefits beyond just pensions.