Which plans are covered under ERISA?

The correct answer is that both pension benefit plans and welfare benefit plans are covered under ERISA (Employee Retirement Income Security Act of 1974). This federal law was designed to protect the interests of employee benefit plan participants and their beneficiaries. ERISA establishes minimum standards for pension and welfare benefit plans in private industry, effectively providing a framework for ensuring that plans are managed fairly and that participants receive their entitled benefits.

Pension benefit plans include retirement plans that provide income after an employee has retired, while welfare benefit plans can encompass a wide range of benefits such as health insurance, disability insurance, and life insurance, among other types of employee benefits. Together, these categories make up the broad array of benefits that ERISA governs, ensuring that participants in these plans have legal rights and protections regarding their benefits.