ABA Family Legal Guide

Law and the Workplace

Leaving a Job

Pension Plans

What are Employee Retirement Income Security Act (ERISA)'s funding requirements?

Generally, the law requires that the employer contribute enough money to cover pension payments when they become due under a defined benefit plan, as determined actuarially. Funding provisions are designed to strengthen pension funds and prevent abuses. The employer and the fund's administrators are obligated to ensure that the funding requirements are met.