Employee Benefit Plans

Employee Benefit Plans
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The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for most voluntarily established pension and health plans in private industry to provide protection for individuals in these plans.

ERISA does not require any employer to establish a plan. It only requires that those who establish plans must meet certain minimum standards.

ERISA requires plans to provide participants with plan information including important information about plan features and funding; sets minimum standards for participation, vesting, benefit accrual and funding; provides fiduciary responsibilities for those who manage and control plan assets; requires plans to establish a grievance and appeals process for participants to get benefits from their plans; gives participants the right to sue for benefits and breaches of fiduciary duty; and, if a defined benefit plan is terminated, guarantees payment of certain benefits through a federally chartered corporation, known as the Pension Benefit Guaranty Corporation (PBGC).

The Department of Labor REQUIRES that a 401K Plan of 100 participants or more at the beginning of a Plan year be audited by an Independent Public Accountant. If the Plan has more than 100 participants, it must file Schedule H to form 5500. If the Plan has under 100 participants at the beginning of the Plan year, it will file Schedule I Small Plan with its 5500 and forego the required audit.

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Metro Metro & Associates
3311 Olney Sandy Spring Road - Olney,
MD 20832