What federal legislation relates to qualified retirement plans?

The Employee Retirement Income Security Act of 1974 (ERISA) is the federal legislation that primarily governs qualified retirement plans. This act was established to protect the interests of employee benefits plan participants and their beneficiaries. It sets minimum standards for pension plans in private industry, ensuring that workers receive the benefits they have earned. ERISA regulates the establishment of qualified retirement plans, mandates disclosure of plan information to participants, and requires plans to adhere to certain funding and fiduciary responsibilities.

Additionally, ERISA introduced guidelines concerning the vesting of benefits and the ability of employees to transfer their benefits if they change jobs. These regulations help to safeguard employee retirement funds, ensuring that they are managed prudently and that participants have access to vital information regarding their retirement savings.

In contrast, the other legislation mentioned—while important in their respective areas—does not specifically address the structure or regulation of qualified retirement plans in the same way that ERISA does. The Tax Reform Act of 1986 focused on broader tax issues, including tax reductions and reforms, rather than explicitly on retirement benefits. The Internal Revenue Code of 1960 provides a comprehensive tax framework but is not solely focused on retirement plans, and the Social Security Act of 1935 established the social security system rather than