ERISA, What Is It?

The Employee Retirement Income Security Act (ERISA) protects an employee or family member of an employee who receives health benefits from a health plan provided through employment in the private sector, and sets standards for administering these plans. Those standards require plans to give the employee important information about the plan and to have a fair process for handling benefit claims. In a PEO relationship, the employer need not worry about claims, as it is the PEO who may be liable for mismanagement.