What is the primary purpose of the Employee Retirement Income Security Act (ERISA)?

The primary purpose of the Employee Retirement Income Security Act (ERISA) is indeed to increase protections for retirees' pension plans. Enacted in 1974, ERISA was designed to ensure that employees receive the benefits they are entitled to from their employer-sponsored pension and health plans. It sets minimum standards for most voluntarily established pension and health plans in the private industry and aims to protect the interests of employee benefit plan participants and their beneficiaries.

ERISA includes provisions that require plans to provide information to participants, establish a fiduciary responsibility for plan managers, and provide a grievance and appeals process for participants to get benefits from their plans. Additionally, it ensures that funds intended for pensions are protected and managed prudently, significantly enhancing the security of retirement benefits for employees.

This focus on safeguarding the financial integrity and availability of retirement benefits differentiates ERISA from the other options, which either mischaracterize the act’s objectives or misrepresent its role in healthcare and pension regulation.