What is the purpose of ERISA?

The purpose of the Employee Retirement Income Security Act (ERISA) is primarily to establish rules governing the participation and funding of retirement plans. This federal law sets standards for most voluntarily established pension and health plans in private industry to provide protection for individuals in these plans. It ensures that employees receive the benefits they are entitled to by imposing requirements on plan sponsors regarding reporting, transparency, and fiduciary responsibilities.

While ERISA does have provisions related to health benefits, its main focus is on retirement plans, making option B the correct choice. This includes rules about how retirement plans must operate, ensuring they are secure and adequately funded, which ultimately protects the interests of employees and their beneficiaries in relation to their expected pension benefits. Other options, while they may address important aspects of insurance and benefits, do not align with ERISA’s primary intent and overarching goals.