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The Employment Retirement Securities Act of 1974 became law on September 2, 1974. ERISA completely overhauled the federal pension law after Congress found that, in general:
a. Employees with long years of service were losing anticipated retirement benefits because of application of strict vesting or years of service requirements;
b. Many plans were “asset poor” and unable to pay the “promised benefits”; and,
c. Plans were terminated before appropriate assets were sufficiently accumulated to pay employees and their beneficiaries promised retirement benefits.
To …
