Private Pensions
The Employee Retirement Income Security Act of 1974 (ERISA) set minimum standards for pension plans. Pension funds operate through funding by payroll deductions and investments.
Pension plans have been under some controversy for many years. Their beginning was a result of wage freezes in the Second World War. Employers needed to incentivize continued employment so they came up with pensions as a fringe benefit. Since then, unions have utilized pensions as a key in labor negotiations and benefits.
Over the years, company pension plans have been abused and operated illegally on numerous occasions. A few personal injury attorney Phoenix professionals have through lawsuits, exposed cases of abuse. Such abuse includes workers being let go just prior to when they may be eligible for the pension, and by such, loose all benefits that where paid in. Another abuse is companies going out of business for the sole purpose of the owners being able to keep the unpaid pension fund.
The ERISA sets minimum standards for pension plans, guaranteeing that pension rights cannot be unfairly denied or taken from a worker. In addition, ERISA may provide protection from workers if certain types of pension plans cannot pay all the benefits which workers are entitled. At times, a personal injury attorney Phoenix has asserted rights under ERISA.
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