What does Employee Retirement Income Security Act Section 510 mean? Read on to discover the definition & meaning of the term Employee Retirement Income Security Act Section 510 - to help you better understand the language used in insurance policies.
Employee Retirement Income Security Act Section 510
Section 510 of the Employee Retirement Income Security Act (ERISA) prevents employers from taking actions that might abridge or impair an employee from collecting benefits. Section 510 also prevents an employer from taking punitive action against a participant for exercising his or her rights under an employee benefit plan. More specifically, Section 510 of ERISA bars employers from (1) discriminating or taking adverse action against plan participants or beneficiaries for exercising their rights under ERISA plans, (2) interfering with participants' or beneficiaries' attainment of rights under ERISA, and (3) retaliating against individuals for giving information or testifying in any inquiry or proceeding under ERISA. For example, Section 510 would prohibit an employer from terminating an employee, without cause, immediately prior to the date on which he or she is scheduled to become vested in the company's pension plan.
We hope the you have a better understanding of the meaning of Employee Retirement Income Security Act Section 510.