FYI Auditing Employee Benefit Plans - The Employee Retirement Income Security Act of 1974 (ERISA) applies to most employee benefit plans. ERISA is comprised of four sections: Title I deals with the Department of Labor (DOL) responsibilities, including reporting and disclosure (and auditing) requirements; Title II specifies the tax law requirements; Title III identifies specific enforcement-related matters; and Title IV addresses multiemployer plan issues, including plan termination procedures

Basic Issues Related to Employee Benefit Plans Under ERISA There are two fundamental types of employee benefit plans under ERISA: 1. Welfare plans—These provide benefits such as healthcare, disability, death, unemployment, job training, and vacation. 2. Pension plans—These provide benefits involving retirement income or deferral of income beyond an employee's period of employment. Eligibility Requirements—The plan must specify the eligibility requirements. ERISA specifies minimum eligibility requirements for pension plans. 1. The minimum age to be eligible to enter the plan cannot be set above age 21, and the minimum employment to enter the plan is generally 12 months (2 years if the plan is fully vested); generally, an employee has to work at least 1000 hours for the year to count toward eligibility. 2. ERISA does not provide specific eligibility requirements for welfare plans.