ERISA means Employee Retirement Income Security Act and it is enacted to protect the interests of people who are close to their retirement age. There are several disability insurance policies that fall under the ERISA and are called ERISA governed group policies.
If your employer has this policy and you are eligible for it, then you would be subject by the laws that govern this policy. Retirement and disability are quite different from each other. A person who is old retires from their work because they have crossed the legal age to work and also because of their age, they may be having some disabilities which can be justified. However, disability insurance does not take age as a consideration and it insures every one who is in the legal age to work.
ERISA protects the employees who have their rights for pension. If the pension is not available after retirement and if the employee was insured under the ERISA group policy, then the employer can be sued for punitive damages. Different companies have a different approach of settlement when it comes to retiring employees. Some companies may agree upon a final settlement and some others may agree for a pension plan. This option is offered to the employee at the time of employment and in most cases a certain amount is deducted from their monthly salary and then that money is used to enroll them into plans like ERISA governed policies. It is like paying for an insurance plan and after retirement this accumulated money can be derived as a pension on a monthly basis.
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