Question

The Employee Retirement Income Security Act (ERISA) of 1974 states that employees must be told about their benefits: __________

a. In a way that clearly specifies advantages and disadvantages of various benefits programs.
b. According to state statutes on benefits dissemination.
c. In a way that the average employee can understand.
d. In a way that clearly lays out unexpected costs that might be associated with choosing certain benefits

Answer 1

c. In a way that the average employee can understand.

Step-by-step explanation:

The Employee Retirement Income Security Act of 1974 is a federal labor and tax law of the United States of America. It is also referred to as the Employee Benefit Security Act and it was originally published (effective) on the 2nd of September, 1974 and was mainly focused on providing pension reforms for the employees working in the United States of America.

Basically, the Employee Retirement Income Security Act (ERISA) of 1974 sets the minimum standards for the administration of retirement (pension) and healthcare plans in the private sector or industry.

Hence, the Employee Retirement Income Security Act (ERISA) of 1974 states that employees must be told about their benefits such as plan features and funding, in a way that the average employee can understand.