The Employee Retirement Income Security Act of 1974 (“ERISA”) is a federal law establishing minimum standards for retirement and health plans in private industry. 

ERISA protects the interests of employee benefit plan participants and their beneficiaries by:

1. requiring the disclosure of financial and other information concerning the plan to beneficiaries;
2. establishing standards of conduct for plan fiduciaries;
3. requiring plans to establish a grievance and appeals process for participants; and,
4. giving participants the right to sue for benefits and breaches of fiduciary duty.

ERISA also provides extensive rules on the effects of federal income tax on transactions associated with employee benefit plans.

The federal Department of Labor, the Internal Revenue Service, and the Pension Benefit Guaranty Corporation are jointly responsible for interpreting and enforcing ERISA.

Read the Law: Pub. L. 93–406, 88 Stat. 829, enacted September 2, 1974, codified in part in U.S. Code, Title 29, Chapter 18

Private Pensions

A private pension, also known as an employer-sponsored pension plan, is a retirement savings plan established by an employer to provide employee retirement benefits. Private pensions are typically established and funded by employers. In some cases, employees may also make contributions through salary deductions.

Benefits for Spouses

ERISA gives spouses and former spouses some rights in a worker’s pension plan. ERISA requires that pension benefits paid at standard retirement age be structured as a joint and survivor annuity. A joint and survivor annuity provides ongoing payments to the retiree and, upon their death, a portion of those payments to their surviving spouse. A former spouse must have been married for at least one year to be eligible for survivor benefits.

Read the law: U.S. Code, Title 29, § 1055

If a pension was earned during the marriage, it may be considered marital property and subject to division at the time of divorce. If the parties or the court divide pension assets at the time of a divorce, they do so by creating a qualified domestic relations order (QDRO).

Social Security

The Social Security program is a federal government initiative that provides financial assistance to eligible individuals and families through various benefit programs. These include retirement and survivor benefits, among others. Social Security benefits are funded through payroll taxes. Workers and employers each contribute a percentage of the worker's earnings to the Social Security program. Self-employed individuals pay both the employer and employee portions of these taxes.

Retirement Benefits: Social Security retirement benefits provide a source of income for individuals who have reached retirement age and have paid into the Social Security system through payroll taxes during their working years. The amount of retirement benefits is based on factors such as the individual's earnings history, age at retirement, and the number of years worked.

Survivor Benefits: Social Security survivor benefits are available to the surviving spouses, children, and dependent parents of deceased workers who had paid into the Social Security system. These benefits provide financial support to eligible family members after a worker's death.

Benefits for Spouses

Even after you divorce your spouse, you may receive Social Security retirement or survivor’s benefits based on your former spouse's record. You may be eligible if you were married to your spouse for at least ten years before a final divorce. To receive benefits, the law requires that:

• you are at least 62 years old;
• you are unmarried;
• your ex-spouse is entitled to Social Security retirement benefits; AND
• you are not entitled to higher retirement or disability benefits on your own record.

Read the law: U.S. Code, Title 42, § 416

If you remarry, you generally lose your rights to benefits based on your former spouse’s record. However, you may be eligible if your later marriage ends in divorce, death, or annulment. If your former spouse dies, you may be entitled to survivor’s benefits if your marriage lasted 10 years or more, you are at least 60 years old, and you have not remarried before age 60. Learn more about applying for Social Security Benefits.

Read the law: U.S. Code, Title 42, § 402

Railroad Retirement

The Railroad Retirement System is a retirement and disability benefit program established for railroad workers and their families. Instead of participating in the Social Security system, railroad workers participate in the Railroad Retirement system. The system consists of two benefit tiers. Tier I benefits are similar to Social Security benefits and provide basic retirement, survivor, and disability benefits to railroad workers and their families. These benefits are based on a worker's earnings and work history, similar to Social Security benefits for workers in other industries. 

Benefits for Spouses

Benefits for divorced spouses under the Railroad Retirement system follow the same rules for divorced spouses that are described above for Social Security benefits.

Read the law: U.S. Code, Title 45, § 231