This law regulates the creation and administration of employee benefit plans, including both pension and welfare benefit plans.

ERISA Coverage applies to general categories of benefits:

1. Pension benefits generally include defined benefit plans, profit sharing plans, 401(k) plans, money purchase plans, most annuity benefits, and other benefit plans that provide for long-term accrual of money benefits for employees, in connection with retirement. ERISA contains requirements concerning the "vesting" of these benefits under certain conditions. These types of plans are also governed by complex IRS regulations. Plans that meet these regulations are called "qualified plans." ERISA further guarantees that participants in defined-benefit plans will receive at least part of their vested benefits should their Plan terminate and be unable to make the required payments which is then made by the Pension Benefit Guarantee Corporation (PBGC).

2. Welfare benefits generally include health insurance, HMO's, PPO's, life insurance, disability insurance, severance benefits, outplacement benefits, and many other types of non-retirement benefits (excluding vacation benefits). These types of benefit plans are subject to ERISA's reporting, disclosure, investment, and other provisions, but are not affected by most tax provisions. Further, these benefits are not normally vested or funded. The Consolidated Omnibus Budget Reconciliation Act, as amended, provides continuous health care of certain covered health plans at group rates to individuals who lose coverage due to certain qualifying events.

Contents of ERISA Plans. ERISA contains detailed provisions concerning the content of pension plans. Welfare plans are not as heavily regulated by the law. In any event, all plans should contain:

1. Clear and precise descriptions of the circumstances under which employees will not receive benefits.

2. A provision allowing the employer to modify, amend, or terminate the plan at any time.

3. A designation of a "plan administrator," and a provision giving this person (and any other decisionmakers) the right to make discretionary decisions concerning the interpretation and administration of the plan.

4. A specific procedure for amending the plan.

5. Specific claims and appeals procedures.

6. Identification of the name of the plan and the sponsor of the plan.

7. All plan documents should be executed by the designated corporate officer.

Reporting and Disclosure. ERISA provides for mandatory disclosure of information to plan participants of a variety of information:

1. All employee benefit plans must provide Summary Plan Descriptions. ERISA regulates the minimum required contents of this document.

2. Annual Reports must be provided to participants.

3. ERISA regulations govern both the content and timing of written decisions by the plan concerning applications for benefits. Further, an appeals procedure must be provided for disputed claims.

4. ERISA requires the filing of a "Form 5500" annually with the U.S. Department of Labor for most benefit plans. The penalties for failing to file is significant. There are exemptions or streamlined reporting for smaller plans.

5. Employees have the right to request copies of plan documents. Penalties can be assessed against employers for failing to provide the requested documents within the statutorily specified time.

Fiduciary Duties. ERISA provides some detailed guidance concerning the management of plan assets and investments by fiduciaries. Certain types of transactions are also prohibited.