The Genesis of ERISA - Happy Birthday

On Labor Day, September 2, 1974, President Gerald Ford signed into law the Employee Retirement Income Security Act (ERISA). What was the genesis for Congress to ink this Act of extraordinarily complex rules?

In the Beginning, Congress Created ERISA

Now ERISA was formless and empty, darkness was over the surface of the deep, and Congress was hovering over boundless words of expression.

And Congress said, “Let there be Title I” and Congress saw that Title I was good for it imposed minimum standards for Reporting, Disclosure, Fiduciary Responsibility. And it was done and Congress saw that it was good.

The Creation of Titles

And Congress said, “Let there be Title II” and Congress created a great expanse between the waters of Title I and Title II. Congress called the expanse the Department of the Treasury to monitor greed and gluttony.

And Congress said, “Let there be Title III” and Congress gathered the Department of Labor and separated them from the Department of the Treasury dividing enforcement between them over the great expanse.

And Congress said, “Let there be Title IV” to fill the expanse between the powers of the DOL and the IRS over the accrued benefits created by Defined Benefit plans. So Congress created the PBGC to govern this expanse and to guarantee minimum benefits for the common man.

The Naming

Finally, Congress named their Act of creation, ERISA, an acronym for “Every Ridiculous Idea Since Adam” for it truly reflected the image of its creator.

Congress blessed ERISA and said, “Be fruitful and increase the number of financially independent retirees and let them fill their retirement accounts.”