ERISA Claims

ERISA claims can be made against fiduciaries acting in bad faith regarding health or retirement plans in the private sector. The Employee Retirement Income Security Act of 1974 (ERISA) protects the retirement assets of Americans, by implementing rules that qualified plans must follow to ensure that plan fiduciaries do not misuse plan assets.

To avoid ERISA claims, ERISA requires that plan administrators do the majority of research in complying with ERISA. This allows the participant in a plan to be relieved of everything except the investing, unless you're acting as your own administrator. In many cases, if you have a plan with an insurance company, that company acts as plan administrator and takes care of these obligations.

Avoiding ERISA claims also requires plans to provide participants with important information about plan features and funding. The plan must furnish some information regularly and automatically. Some of this information should be available free of charge to the participant.

ERISA sets minimum standards for participation, vesting, benefit-accrual and funding. The law defines how long a person may be required to work before becoming eligible to participate in a plan, to accumulate benefits and to have a non-forfeitable right to those benefits. The law also establishes detailed funding rules that require plan sponsors to provide adequate funding for the plan. A breach in this contract can result in an ERISA claim.

Another requirement of ERISA is the accountability of plan fiduciaries. An ERISA claim generally defines a fiduciary as anyone who exercises discretionary authority or control over a plan's management or assets, including anyone who provides investment advice to the plan. Fiduciaries who do not follow the principles of conduct may be held responsible during an ERISA claim for restoring losses to the plan.

ERISA also gives participants the right to sue for benefits and breaches of fiduciary duty. An ERISA claim allows the participant to reclaim lost moneys or benefits due to a misappropriation of funds.

ERISA claims guarantee payment of certain benefits if a defined plan is terminated. Payment is usually delivered through a federally chartered corporation, known as the Pension Benefit Guaranty Corporation.

The threat of an ERISA claim protects the plan from mismanagement and misuse of assets through its fiduciary provisions. The ERISA act was enacted to address irregularities in the administration of certain large pension plans.

If you believe that you have an ERISA claim you should contact an experienced attorney today. An experienced attorney can expedite your ERISA claim, where normally a corporation would stall you out.