What Is ERISA?

ERISA is a federal law that establishes the requirements for some voluntary retirement and health plans in the private sector. The law protects covered individuals by curbing the mismanagement of pension plans. Among other things, plans must provide participants with certain information, such as a description of the features and funding. Plans must also define fiduciary responsibilities, establish compliant and appeal procedures, and allow participants to sue for fiduciary duty and benefit breaches.

Congress has amended ERISA several times to expand the protections. For example, the Health Insurance Portability and Accountability Act (HIPAA) amended ERISA to protect covered persons against discrimination on health-related grounds. Also, the Consolidated Omnibus Budget Reconciliation Act (COBRA) amended ERISA to allow employees and their families to continue their employer-sponsored health coverage for a limited duration after a qualifying event.

ERISA doesn’t include group healthcare plans established by the government. It excludes plans that churches maintain for their employees or those solely maintained to comply with unemployment, workers’ compensation, and disability laws. Plans maintained outside the United States mainly to benefit nonresident aliens or unfunded excess benefit plans also do not fall under ERISA.

What Is the Purpose of ERISA?

Employers have the option to provide health insurance — there is no obligation. However, ERISA will hold you accountable for the promises made under the plan when you choose to do so. ERISA aims to ensure employers properly administer voluntary healthcare plans.

ERISA prioritizes federal reforms, streamlining compliance across the country. It sets the minimum standards and empowers the Employee Benefits Security Administration (EBSA) to enforce them. EBSA is a division of the Department of Labor (DOL) that ensures the integrity of covered plans. It investigates complaints and takes enforcement actions to safeguard the interests of participants and beneficiaries.

The Pension Benefit Guaranty Corporation (PBGC) also plays an instrumental role in ensuring the continuous receipt of pension benefits. The Internal Revenue Service (IRS) enforces provisions relating to ERISA plans in the Internal Revenue Code.

Plans Under ERISA

ERISA applies to retirement and health benefit plans:

1. Retirement Benefit Plans

There are two main classifications of retirement plans under ERISA. These are defined benefit plans and defined contribution plans. Defined benefit plans are pension or retirement plans that promise a specified monthly benefit during retirement. The benefits are fixed and pre-established. It can be a dollar amount or calculated based on the employee’s age, tenure of service, and earnings history.

Employers may contribute and deduct from their taxes annually, allowing them to provide substantial benefits. Businesses of any size can establish defined benefit plans, but the downside is that they can be complex and cost more than others.

Contrary to defined benefit plans, defined contribution plans do not promise a specified amount at retirement. Instead, the employer, employee, or both contribute to the employee’s account. The money in the account grows with any investment gains or losses. Examples of defined contribution plans are 401(k), 403(b), profit-sharing, and stock ownership plans.

2. Health Benefit Plans

Private employers provide various forms of health coverage, including group health plans and insurance coverage. Group health plans offer comprehensive coverage for hospitalization, preventive care, prescription drugs, and more. Depending on the coverage, eligible employers and their dependents may enjoy medical, vision, and dental benefits.

ERISA also applies to insurance coverage, such as health maintenance organizations (HMOs) and flexible spending accounts (FSAs). Other plans, like disability insurance, also fall under ERISA, although not employer-sponsored.

ERISA Requirements for Employers

Below are key ERISA compliance requirements employers must meet:

• Plan documents: ERISA requires employers to outline specific details in a plan document. Additionally, the plan must provide a comprehensive summary.
• Reporting requirements: Plan administrators have several reporting requirements under ERISA. For example, they must file Form 5500 annually, subject to exceptions.
• Enrolment opportunity: Employers must offer employees who meet the plan requirements the chance to enroll. Qualified employees must receive all notices, forms, and instructions.
• Fee disclosure: Employers must disclose participant fees annually.
• Notification requirements: Employers must notify participants of changes to the plan before the effective date.

The list above is not exhaustive, so consider partnering with a professional for personalized support.

Fiduciary Duties Under ERISA

Under ERISA, a fiduciary is an individual or entity with discretionary authority or control over the plan’s assets or management. Examples include employers, plan administrators, and service providers. The law sets standards for how these fiduciaries should conduct themselves, which include the following:

1. Act solely in the interest of participants and beneficiaries
2. Be transparent, loyal, and prudent in all their engagements
3. Exercise sound judgment, diligence, and skill in managing the assets
4. Diversify plan investments
5. Adhere to terms in the plan documents

Fiduciaries could be held accountable or liable for breaching their duties. Depending on the circumstances, the liability could be personal. For example, a court may order them to restore losses or pay back stolen funds.

Common Challenges in Achieving ERISA Compliance

There are some potential challenges with ERISA compliance, such as:

• Complexity of rules: The laws are comprehensive and challenging to understand.
• Changes in legislation: Keeping up with the changes in law can be daunting for some businesses.
• Strict reporting requirements: ERISA demands meticulous record-keeping and reporting, which can deter some employers.
• High fiduciary standards: ERISA sets high standards for fiduciaries, imposing an added burden on employers.
• Hurdles in training and education: Many employers lack the in-house resources to train staff on the ERISA requirements.

These pitfalls exist, but you can hire a trusted advisor to assist.

How Fort Pitt Capital Group Can Help

Fort Pitt Capital Group is a team of financial advisors knowledgeable about ERISA compliance requirements. We help sponsors establish and maintain retirement plans, leveraging our resources. Our professionals can provide fiduciary oversight and investment consulting to balance risk and return. We can monitor your retirement plans and assist with employee education and audit support. You do not have to worry about legislative changes and the potential impact on your plan.

Contact Fort Pitt Capital Group for Professional Support

Private employers providing retirement and healthcare plans may have to comply with ERISA. The rules and obligations are complicated, but Fort Pitt Capital Group can help. We have decades of experience in the industry, supporting businesses in complying with ERISA and related laws.

Fort Pitt Capital Group prioritizes personalized solutions because we believe every case is unique. Want to learn more or take advantage of our efficient services? Contact us now!

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As a U.S. Navy veteran, Michael used his military education benefits to pursue undergraduate and graduate degrees in architectural engineering from Pennsylvania State University. At Penn State he specialized in power lighting systems. Following college, Michael founded AE Works, which is a firm with over 35 professionals and has offices in State College and Arlington, Virginia.

Micheal dedicates a large portion of his free time to veteran organizations in the Pittsburgh region. He has served on the board of Veterans Leadership Program of Western PA (VLP), the VA’s Community Engagement Board in Pittsburgh and is currently on the board of Veterans Breakfast Club (VBC).

In order to be eligible for this award, nominees must be a U.S. military veteran business owner who actively runs a business in the Greater Pittsburgh Area. Check out our commercial here:

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Our firm has carefully chosen a variety of organizations to donate to. If you’re looking for a way to give back and help those impacted, below are some of the organizations we’ve turned to:

Sponsored

• Pittsburgh Foundation: Raising funds to support eight organizations engaged in meeting the needs of those killed and wounded. The foundation is contributing a dollar for dollar match pool up to $150,000.

• Pittsburgh Penguins: Collecting monetary donations to help support the victims, families and first responders. Donations will support the Jewish Federation of Greater Pittsburgh and will help establish a fund with the City of Pittsburgh Department of Public Safety.

Direct

• Jewish Federation of Greater Pittsburgh: Funds donated to the Jewish Federation of Greater Pittsburgh will be used for psychological services, support for families, reconstruction medical bills and counseling of those impacted.

• Tree of Life Synagogue: Donations made through the Tree of Life Synagogue website will be used to assist the victims and families of the tragic shooting and to assist in the reconstruction of the synagogue.

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The Carnegie Museums of Pittsburgh is a staple organization within the community, and we’re ecstatic to take part in its sponsorship. We have been integral sponsors for years with the Carnegie Museum and are happy to offer our ongoing support for this exhibit and a prominent Pittsburgh artist. This exhibit will run until March 25, 2019.

Check out photos of the Fort Pitt team and the new exhibit below!

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March 3, 2018 – Big Night Kick Off Your Boots, to benefit the Jewish Community Center of Greater Pittsburgh, a nonprofit dedicated to enriching the community by creating an environment rooted in Jewish values.

March 3, 2018 – 7th Annual Brave American Classic for Boulder Crest, an organization dedicated to improving the physical, emotional, spiritual, and economic wellbeing of the nation’s military, veterans, first responders and their families.

April 21, 2018 – 2018 Yellow Creek Fly Fishing Classic for the Cystic Fibrosis Foundation, whose mission is to cure cystic fibrosis and to provide people with cystic fibrosis opportunities to live full, productive lives by funding research and drug development, promoting individualized treatment, and allowing access to specialized care.

April 26, 2018 – 118th Annual St. Barnabas Founder’s Day Celebration, to benefit St. Barnabas Charities, Inc, one of Pennsylvania’s largest healthcare systems that offers comprehensive and compassionate care for retirees at an affordable price, supporting a range of lifestyles.

May 4, 2018 – Celebrating Survivors for Women’s Center & Shelter of Greater Pittsburgh, a nonprofit that serves as a healing and safety shelter for women and children that are victims of domestic abuse.

May 14, 2018 – Golf Benefit n’at to benefit Family Hospice & Palliative Care, whose mission is to provide resources and promote an enhanced quality of life for all patients and families living with the burden of a serious illness.

May 19, 2018 – Annual Golf Outing for The Friends of South Park, Allegheny County Park. This organization’s mission is to preserve the rich heritage and resources of South Park  by recommending areas of improvement and working to fulfill them.

June 8, 2018 – 20th Anniversary Gala for The Bethlehem Project. Their goal is to identify entrepreneurs, develop their business model, provide leadership training and work to secure funding, while simultaneously lowering unemployment in the Christian minority population.

June 18, 2018 – The Red Shield Campaign Kettle Challenge Golf Invitational for the benefit of The Salvation Army, whose mission is to meet human need, wherever, whenever, and however they can.  

June 21, 2018 – 23rd Annual Golf Outing, Tees & Traps for Homelessness Ends with Advocacy, Resources, Training and Housing (HEARTH). HEARTH is a nonprofit organization dedicated to eliminating homelessness among women with children.

August 3, 2018 – 23rd Annual BC3 Education Foundation Golf Outing for the BC3 Education Foundation. This organization enhances the experience of Butler County Community College students by providing resources to support the college’s mission.

Our community outreach and service is constantly developing and we are excited for future opportunities to continue to serve the community. Stay tuned for a look at the events we’ll be assisting with this winter!

Fort Pitt Capital Group is not affiliated with these organizations and this information does not reflect an endorsement of Fort Pitt.

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An on-again, off-again boxer since the age of 12, Mook launched his business – a full-service and family-run fitness facility – in December 2016. In the first year of business, the gym acquired more than 200 members, and the number continues to grow today. In addition to his business, Mook also volunteers as a coach at Steel City Boxing, which aims to provide youth with a structured and safe environment to practice the sport of amateur boxing. His professional passion turned personal, when, after coaching two brothers, Mook opted to become their foster parent and soon after adopted them both.

Prior to the establishment of Jack’s Boxing Gym, Mook served as an Airborne Ranger, assigned to the 82^nd Airborne Division, from 1988 through 1992. He also spent nine months in Iraq during the Gulf War.

Of his business success and growth, Mook said, “To see something that you’ve put your blood, sweat and tears into finally come to fruition is truly exhilarating. I am honored to receive such a prestigious award, and I believe that it serves as a testament to the heart of Pittsburgh – where people exude passion and hard work.”

Check out our commercial here:

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April 26, 2016 – A Night at the Speakeasy benefiting Outreach Teen & Family Services, a non-profit, community-based counseling agency located in the South Hills area of Pittsburgh.

May 23, 2016 – 29^th Annual Golf Benefit for Family Hospice and Palliative Care, the leading non-profit, community-based hospice and palliative care organization in Western Pennsylvania.

May 26, 2016 – 24^th Annual Golf Outing for The Arsenal Family & Children’s Center. The organization offers programs and services that provide the building blocks necessary to create a strong foundation for the healthy development of children, and the formation of nurturing and healthy parent-child relationships.

June 1-14, 2016 – Pittsburgh Mercy’s Online Auction to benefit Dancing Classrooms Pittsburgh, an arts-in-education program whose mission is to build social awareness, confidence, and self-esteem in children through the art and practice of ballroom dance.

June 2, 2016 – Golf Invitational at Laurel Valley Golf Club benefiting Westley Spectrum. The annual fundraiser has guests gather for an important mission – to provide transformational support for children and families as they strive to become independent, responsible and caring members of our community.

June 20, 2016 – 21^st Annual Tees & Tapas benefiting Hearth (Homelessness Ends with Advocacy Resources Training and Housing), a non-profit organization dedicated to the elimination of homelessness among women with children.

July 11, 2016 – 9^th Annual Yellow Ribbon Fund/Army Navy Country Club Golf Classic for Injured Service Members. The Yellow Ribbon Fund continues to provide practical support to injured service members and their families while they’re at Walter Reed National Military Medical Center, Fort Belvoir Community Hospital, and after they return to their hometowns.

July 25, 2016 – 15^th Annual Charity Golf Outing for South Hills Interfaith Movement (SHIM). Together, with teams of dedicated volunteers, donors and partners, SHIM works to reduce the devastating effects of suburban poverty among families, individuals, and the high concentration of refugee families in our service area.

August 2, 2016 – 5th Annual unWINEd: A Toast to Hope for a Cure benefiting the Children’s Hospital of Pittsburgh Foundation. All proceeds benefit the Division of Pediatric Hematology/Oncology and the Division of Blood and Marrow Transplantation and Cellular Therapies at Children’s Hospital of Pittsburgh of UPMC.

We’ve accomplished a lot so far and are excited for future opportunities to serve the community. Stay tuned for a look at the events we’ll be helping out with this fall!

Fort Pitt Capital Group is not affiliated with these organizations and this information does not reflect an endorsement of Fort Pitt.

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We’re sponsoring the 2015 Annual Summer Festival on August 18 benefiting the Spina Bifida Association of Western Pennsylvania. The festival will be a great day of activities, auctions and live performances to raise funds for the non-profit that is dedicated to improving the quality of life for those with spina bifida and their families.

Additionally, we’re sponsoring the Executive Women’s Council 40^th Anniversary Celebration on September 9. The Executive Women’s Council was established to promote the economic and political advancements of leading women in business and the professions within the Pittsburgh region.

Shortly after, we are also looking forward to the Bethany House Academy Charity Golf Outing on September 14. We’re excited to sponsor this event, as the non-profit is devoted to reducing negative impacts of poverty and inadequate education in the impoverished community of Northview Heights in North Pittsburgh.

Finally, another approaching event is Salon Noir on September 18, a benefit party supporting the New Hazlett Theater. We’re one of the sponsors of this annual gala benefiting the theater, which provides an encouraging and collaborative environment for local artists.

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It is the second year of our sponsorship for the Spencer Family YMCA Capital Campaign. The progress being made for facility renovations will help to support local youth development, healthy living, and being socially responsible.

We were also happy to contribute to those who serve and protect our country. We joined the Marine Corps Scholarship Foundation in memory of Walter Zuck to honor Marines and Navy Corpsmen by supporting the education dreams of their children. We also made donations to Mary Kay to purchase hand cream and cleansing cloths to go into packages (sent by Operation Courage is Beautiful – a non-profit) for servicewomen overseas.

Additionally, we were a sponsor for St. Clair Hospital’s 18^th Annual Summer Swing on July 17. Every year, this event helps support the St. Clair Hospital Foundation for continued quality care.

Other noteworthy contributions to the community include the July 9 Home Depot Clays for the Cure benefiting The Leukemia & Lymphoma Society, as well as the July 10 Garden Tour benefiting Mt. Lebanon Public Library.

Lastly, The Friendship Circle—Friends All Around is another cause we sponsored. The goal of this organization is to support children and young adults with special needs to become more integrated into the community. We are proud to be associated with The Friendship Circle as they make a difference in these individuals’ lives.

Check back soon for upcoming end-of-summer events we’re excited to support!

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