A look at ERISA

Imagine the day of your retirement, fondly looking forward to the aureate geezerhood ahead, safe in your knowledge that your union subsidy go out support your financial needs. Then to your horror, you risk out that your friendship has squandered the funds set deviance for retirement! Thankfully, thither are protections in place to keep open this scenario from playing out. In 1974, the Employee Retirement Income Security Act (referred future disco biscuitse 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 for the most part make for tax purposes. This monitoring was done under the tax income Act of 1942 and the Welfare and bonus Plans disclosure Act of 1959 (History, 2004) thither was nonhing to protect the employee or stop the employer from robbing the pension. angiotensin-converting enzyme such typesetters case was the Studebaker Car Company. Even though Studebaker had an minute pension program, the phoner fell on hard times. Employees were floor upon retiring to incur that the very funds set aside for them had been mismanaged and squandered (Richardson, 1995). thither were also stories like these: People were surprise to hear intimately one employee who worked for ten straight years.

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

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