Question

Prior to the passage of the ERISA Act, there was little regulatory oversight over private pension plans.

True or False

Answer 1

Answer-

The statement is True.

ERISA Act was passed in 1974 which was a landmark law providing extensive rules governing private pension plans and other employee benefit plans.

ERISA requires

That private pension plans hold plan assets in trust for the benefit of the employees and their beneficiaries,
That pension plans be funded on a timely basis, and
It ensures that most covered employees with more than five years of service have a vested right to receive their pension benefits.