Question

The Employee Retirement Income Security Act or 1974 regulates private pension plans in the U.S. and provides protection against loss of benefits to retired workers?

Answer 1

Yes, the Employee Retirement Income Security Act (ERISA) of 1974 regulates private pension plans in the U.S. and provides protection against the loss of benefits to retired workers.

Step-by-step explanation:

Yes, the Employee Retirement Income Security Act (ERISA) of 1974 regulates private pension plans in the U.S. and provides protection against the loss of benefits to retired workers.

Under ERISA, employers that offer pensions to their retired employees are required by law to contribute a small fraction of what they set aside for pensions to the Pension Benefit Guarantee Corporation (PBGC). In the event that a company goes bankrupt and cannot fulfill its pension obligations, the PBGC pays at least some pension benefits to the workers.

This regulation ensures that retired workers are safeguarded against the potential loss of their pension benefits and provides them with a level of financial security upon retirement. It also aims to encourage employers to fulfill their pension obligations and contribute towards the retirement savings of their workers.