The Employee Retirement Income Security Act of 1974 is characterized by all of the following EXCEPT:
A) compulsory setting up of a pension fund for its employees.
B) guidelines restricting the firm's freedom to take money out of the fund.
C) guidelines providing formulas for employee vesting.
D) guidelines providing formulas for portability.

Question

Quizplus · Accepted Answer

The Employee Retirement Income Security Act of 1974 does not mandate that employers set up a pension fund for their employees. It instead sets forth guidelines and regulations for the management and funding of employer-sponsored retirement plans, such as 401(k) plans and pension plans, to safeguard the interests of employees in their retirement savings.

The Employee Retirement Income Security Act of 1974 Is Characterized