What does ERISA stand for?

The correct answer, Employee Retirement Income Security Act, refers to a significant piece of legislation passed in 1974 to protect the interests of employees enrolled in pension and health plans. ERISA establishes minimum standards for retirement and health plans in private industry to ensure that plan participants receive the benefits they are entitled to.

One of the key components of ERISA is the requirement for plans to provide participants with information about plan features, funding, and benefits. Moreover, it sets standards for fiduciary responsibilities, ensuring that those managing the plans do so in the best interests of the participants. This legislation is crucial as it offers protections against mismanagement and abuse of funds, which can be detrimental to employee savings for retirement.

The other choices do not accurately represent the legislation's title or purpose. They either misstate the essential components of the act or do not relate to its central focus on retirement income security, which is why they do not align with the correct answer. Understanding the full title and scope of ERISA is fundamental in wealth management, as it impacts how retirement funds are managed and secured for employees.