Employee Retirement Income Security Act: A Short Analysis

The Employee Retirement Income Security Act or ERISA was established in 1974 as a safeguard for employees to acquire insurance after retirement or disability. This act is the standard of every private insurer in assessing the amount of benefits that a retiree might receive as it sets the minimum requirements for private insurance companies to follow.

ERISA Provisions and Exceptions

Bulleted provisions of ERISA for companies to follow are the following:

• Inform participants of a private plan with important information regarding the obtainable benefits and available funding.
• Set the minimum requirements for plan eligibility and the requirements that must be undertaken for the plan to fully work.
• Give the benefactors the right to file a lawsuit against private insurers if something goes seriously wrong.

Now, lawsuits regarding disability benefits almost always draw upon the ERISA when attacking insurance companies which they accuse of shirking their duties. It is certainly possible that companies may avoid certain conditions in disability benefits, but there are also some which are immune to the ERISA. These are the following:

1. Government-ran group health plans.
2. Employees of churches.
3. Certain inapplicable plans depending on the insurance company.
4. Companies being run outside of the United States.

But ERISA, nevertheless remains a powerful law in its own merit. It serves as a form of assurance against the market abuse of certain capitalistic, profit-focused private insurers which may render abuse to the retirees.

Disability Benefits

Aside from the elder retirees, disabled persons may also apply for long-term disability benefits. However, denial is possible by Insurers, and it is arguably very difficult to reverse an initial rejection. With the help of ERISA and a proper timing and approach, turning the tables shouldn’t be that difficult.

When applying for long-term disability benefits, one must be reminded to do the following:

• Be informed of the insurance company’s working policy.
• Determine the exact date of the onset of the disability.
• Carefully time your last day of work.
• Keep thing on track and on time by knowing various deadlines.
• Obtain your medical records

It is better to abide by the proper steps in applying for long term disability benefits. Under the ERISA, the right of everyone to have an assurance of a financially safe future is greatly improved, and insurance companies are no longer enjoying absolute freedom in taking advantage of their benefactors.