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Employee Retirement Income Security Act

Employee Retirement Income Security Act definition - finance
A federal law, passed in 1974, that regulates private pension plans. The law set up the Pension Benefit Guaranty Corp., which created guidelines for managing pensions, and made qualifying for a pension easier for individuals. The Pension Benefit Guaranty Corp. is a quasi-federal agency that protects the retirement income of over 44 million U.S. workers in more than 35,000 defined benefit pension plans if the companies operating the plan go bankrupt.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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