Retirement Equity Act Of 1984

What Does Retirement Equity Act Of 1984 Mean?

The Retirement Equity Act of 1984, sponsored by Congressman William Clay Sr. of Missouri, amended the Employee Retirement Income Security Act of 1974 (ERISA). This Act is particularly recognized for its focus on gender equity, as well as its reforms to pension plans.

Insuranceopedia Explains Retirement Equity Act Of 1984

The Employee Retirement Income Security Act of 1974 (ERISA) was enacted to address the issue of poorly funded pension plans for workers. While it did not mandate the establishment of pension plans, it required that any employer who created such a plan comply with government regulations. These regulations ensured that important information was disclosed to beneficiaries and that benefits were distributed in a timely manner.

The 1984 amendment to ERISA introduced additional provisions, including the recognition of maternity and paternity leave. It also lowered the minimum participation age from 25 to 21, acknowledging that many women entered the workforce at a younger age.