X-Nico

5 unusual facts about Employee Retirement Income Security Act


Bruce Henderson

In 1974 Henderson made BCG an independent business, and was one of the first to take advantage of the Employee Retirement Income Security Act of 1974 that allowed the establishment of an employee stock ownership plan (ESOP).

Employee Retirement Income Security Act

Before the Pension Protection Act of 2006 (PPA), a defined benefit plan maintained a "funding standard account", which was charged annually for the cost of benefits earned during the year and credited for employer contributions.

Under the Pension Protection Act of 2006, employer contributions made after 2006 to a defined contribution plan must become vested at 100% after three years or under a 2nd-6th year gradual-vesting schedule (20% per year beginning with the second year of service, i.e. 100% after six years).

Healthcare policies of candidates in the United States presidential election, 2008

It remains to be seen if the resulting law can be fully implemented because of conflicts with the Federal Employee Retirement Income Security Act (ERISA) that limits state regulation of employer health insurance.

Technostructure

Furthermore, the Employee Retirement Income Security Act of 1974 forced a much greater transparency from businesses and possible opposition to their decisions.



see also