Question

Which of the following provides requirements for private pension plans?

1) the Fair Labor Standards Act
2) the Civil Rights Act of 1964
3) the Worker Adjustment and Retraining Notification Act
4) the Social Security Act
5) the Employment Retirement Income Security Act

Answer 1

The Employment Retirement Income Security Act (ERISA) is the legislation that sets requirements for private pension plans, ensuring financial safety for retired employees. Therefore correct option is (5)

Step-by-step explanation:

The legislation that provides requirements for private pension plans is the Employment Retirement Income Security Act (ERISA). This act makes it mandatory for employers offering pensions to their retired employees to pay into the Pension Benefit Guarantee Corporation, ensuring that employees receive at least some of their promised pension benefits if the company goes bankrupt. ERISA sets minimum standards to ensure that pension plans are maintained in a fair and financially sound manner.