Millions of employees have contributed to 401(k) plans without worrying that their employer will raid their account to fund a weekend in Vegas. For that, you can thank the Employee Retirement Income Security Act (ERISA), which turns 50 this fall. Likewise, if you’re fortunate enough to have a traditional pension, ERISA protects your benefits if your employer goes out of business.
But as ERISA celebrates its golden anniversary, it isn’t without its critics. Some analysts say ERISA has made it too expensive for companies to offer traditional pensions, accelerating their demise. And while legislative updates to ERISA have made it easier than ever for many people to save for retirement in 401(k) plans, nearly one-third of private-sector workers lack access to an employer-sponsored plan, putting their retirement security at risk.
