Question

ERISA uses the term "parties in interest" to describe __________.

1) the Trustee of the plan
2) plan-related persons who are prohibited by ERISA from entering into transactions with the plan
3) a vendor (i.e. Attorney or TPA) who currently provides services to the plan
4) the Participants who have balances invested in the Plan

Answer 1

ERISA uses the term 'parties in interest' to describe plan-related persons who are prohibited by ERISA from entering into transactions with the plan.

Step-by-step explanation:

ERISA, which stands for Employee Retirement Income Security Act, uses the term 'parties in interest' to refer to plan-related persons who are prohibited by ERISA from entering into transactions with the plan.

These individuals may include plan fiduciaries, employers, employees, or service providers who have a relationship with the plan. The purpose of this provision is to prevent conflicts of interest and protect the interests of the plan participants.