This Act sets minimum operational and funding standards for employee benefit plans. It covers most private sector employee benefit plans, but does not cover government plans.
The Act requires plan administrators to provide a plan description to any plan participants, and file an annual report about the plan’s performance. Plan fiduciaries are required to operate the plan only to the benefit of plan participants, and to act prudently in doing so.
The Pension and Welfare Benefits Administration of the Department of Labor enforces this Act, with the assistance of the Internal Revenue Service for some provisions. The Department can bring a civil action to correct law violations, and can bring criminal actions for willful violations. Annual reporting violations can result in a penalty of $1,000 per day.