Happy 40th Anniversary ERISA

The Employee Retirement Income Security Act of 1974 (ERISA) was signed into law on Labor Day, September 2, 1974 by President Gerald Ford.  This federal law provides protection to participating employees in employer sponsored health and retirement plans. Forty years ago many employers offered employees retirement packages and pensions. Where an employee would work for many years at a company, …

Prohibited Transactions defined in ERISA Section 406(a)

Section 406(a) states that a plan fiduciary may not engage the plan in an activity or transaction if he or she knows, or should know that the action directly or indirectly involves the: Sale, exchange, or lease of any property between the plan and a party in interest Lending of money or extending of credit between the plan and a …