3.9.1. Employee Retirement Income Security Act (ERISA)
Tax-qualified plans must meet both IRS and Employee Retirement Income Security Act requirements. The Employee Retirement Income Security Act was enacted in 1974 to protect the retirement assets of people working in the private sector. All employer-sponsored tax-qualified retirement plans must meet the following ERISA requirements:
• The plan must be available to all employees who are at least 21 years of age and who work at least 1,000 hours a year (no employees that fit these requirements can be excluded from the plan).
• Employees must be covered by a retirement plan within a reasonable time of their employment (generally one year, unless the employee is under 21 years of age).
• Pension sponsors must fully fund the participants’ benefits, and the