Of Counsel Michelle Capezza spoke with Fiduciary News providing insights on the Employee Retirement Income Security Act (ERISA) and whether it unintentionally contributed to the decline of traditional pension programs.
Michelle commented, "In my view, the ERISA requirements for pension plans were not enacted to phase out pension plans, but rather, they were enacted, and are necessary, to protect workers and to ensure that they would receive their promised pension benefits in retirement, a promise upon which they relied. It wouldn't make sense for an employer to sponsor a defined benefit pension plan and make promises to employees about pension benefits if they can't meet the fiduciary standards and funding requirements for the plan, as well as all of the other ERISA and tax code requirements that go along with it."
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