Employee Retirement Income Security Act(ERISA)Law
Legal Definition of Employee Retirement Income Security Act
provided for the regulation of private pension plans. The law stipulated capitalization, membership, and operating requirements and altered vestment formulas to include, for example, mandatory employee vestment after a certain period of time. The law also required pension-fund operators to make periodic reports on the conditions and activities of the fund. Oversight of the Act's provisions was assigned to the newly created Pension Benefit Guaranty Corporation. The law also provided for regulation of employee welfare benefit plans, such as group health plans, disability insurance plans, or other plans, funds, or programs benefiting employees. Provisions of the Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA), codified at 29 U.S.C. § 1161 et seq., provide for continuation of ERISA benefits under such a plan to eligible employees upon termination of employment.