Module 7: Debate: Defined Benefit or Contribution Plans

Student Name

 Question One: What protections does ERISA provide to employees in general?

       Main purpose of ERISA is to protect the interest of workers especially who participate in employment benefit plans which includes certain retirement and healthcare plans, this protection is usually extended to retires as well as the beneficiaries. Employees under ERISA are generally protected from creditors how credit them e.g., loans, protect them from bankruptcy proceedings and civil lawsuits.For instance, an employee is declared bankruptcy his/her retirement savings are not at any risk and even your creditor cannot make any claim against funds held in his /her retirement account if your any money to any of them. ERISA regulates plan administrators and sponsors to ensure they provide plan information to their participants and remain compliant with their fiduciary duties. ERISA protects retirement savings from mismanagement and abuse, and clarifies that those in charge of those savings be held to a high standard that is, they must act in the best interests of plan participants. It also requires transparency and accountability, ensuring that participants have access to information about their plans. More than half of America’s workers earn health benefits on the job, and ERISA protects those too, as well as other employee benefits.

Question Two: Why are these protections important?

             ERISA involvement in protecting the employees is very important. Employees are not harassed by either creditors or anyone since ERISA ensures that they money in the retirement account cannot be claimed by anyone apart from employees only. Employees are still given the privilege of accessing healthcare and any other privilege given to them without any difficult. Also ensurethat they provided with plan information for the administrators and sponsors to their participants and remain compliant with their fiduciary duties. Protection by ERISA also ensures that they retirement savings are protected and cannot be claimed are be taken away from them. This protection also ensures that they are transparency and accountability, ensuring that participants have access to information about their plans.  

Question Three: Can employees truly rely on benefits such as health insurance and retirement?

        Absolutely Yes. These benefits provide for employees’ wellbeing. These advantages of employment-based health insurance it suggests that they are more considerable to most of the workers than any other added wages. If these benefits are not available at all it would be much expensive in transacting the cost of health care for the workers and they families. When employees rely on such reimbursement, they are to save a lot since wait they or what is in their retirement account is not used to cover for, they health and still it cannot be claimed since they are already covered. Retirement money given to the employee is much important since to will them continue with life and be able to provide for they family even after they earning period has expired.

References

Wooten, J. (2005). The Employee Retirement Income Security Act of 1974. In The Employee Retirement Income Security Act of 1974. University of California Press.

Schaaff, B. (2018). Using Federal Nondiscrimiantion Laws to Avoid ERISA: Securing Protection from Transgender Discrimination in Employee Health Benefit Plans. Duke J. Gender L. & Pol’y, 26, 45.

Vogel, J. (1986). Containing Medical and Disability Costs by Cutting Unhealthy Employees: Does Section 510 of ERISA Provide a Remedy. Notre Dame L. Rev., 62, 1024.

Stone, K. V. W. (2006). Legal protections for atypical employees: Employment law for workers without workplaces and employees without employers. Berkeley J. Emp. & Lab. L., 27, 251.

Odunlade, R. O. (2012). Managing employee compensation and benefits for job satisfaction in libraries and information centres in Nigeria.