Question

Explain the way ERISA and PBGC provides protection for workers with pensions.

Answer 1

ERISA protects the workers with pensions through the three following ways:

1. wrongful termination- It is important to mention that ERISA protects a worker from getting terminated by an employer who is unwilling to provide a pension to a worker.

2. Fund management- secondly, a worker is protected from an employer who does not manage worker funds with care. Such employers are subjected to prosecution.

3. Guidelines for eligibility- It is important to mention that the pension plan applies to any employee who is aged above 21 years and has for 12 months with an employer.

The PBGC acts to protect the workers with pension through the multiemployer pension plan and single employer pension plan through different insurance programs. It ensures benefits to the workers of the private sector workers through the employers that offer the pension benefits to the workers.