What does ERISA primarily cover?

The correct answer is centered on retirement plans because ERISA, or the Employee Retirement Income Security Act, was enacted to set standards for retirement and health benefit plans in private industry. Its primary focus is to protect the interests of employee benefit plan participants and their beneficiaries by establishing rules that plans must follow.

ERISA governs a wide range of employee benefit plans, but it is most notable for its comprehensive regulations surrounding retirement plans, such as 401(k) plans, pensions, and profit-sharing plans. It aims to ensure that these plans are managed fairly and that employees have access to the information they need regarding their benefits.

While ERISA does encompass aspects of employee benefits more broadly, including health insurance, it is primarily recognized in the context of retirement plans. This distinction is essential for those studying the legislation and its implications for employee benefits in the workplace, as it highlights the protection and regulations that ERISA establishes specifically for retirement savings vehicles, which are critical for employees' financial security in retirement.