Glossary · Compliance
ERISA (Employee Retirement Income Security Act)
Federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry.
ERISA governs the administration of employer-sponsored benefit plans, imposing fiduciary, reporting, and disclosure obligations on plan sponsors and administrators. Violations can carry significant personal liability for fiduciaries.
A PEO's master health and retirement plans are typically structured to consolidate ERISA administration, but the legal allocation of fiduciary duty depends on plan documents and the CSA. Sophisticated buyers review ERISA allocation explicitly during PEO selection.
Related terms
- COBRA (Consolidated Omnibus Budget Reconciliation Act)Federal law requiring employers with 20+ employees to offer continuation of group health coverage to qualified beneficiaries after qualifying events.
- Master Health PlanA single health insurance plan sponsored by a PEO that aggregates risk and purchasing power across all of its client employers.
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