Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date.
What Happened? On this day in 1974, U.S. President Gerald Ford signs the Employee Retirement Income Security Act.
Where The Market Was: The Dow Jones Industrial Average closed at 678.58 and the S&P 500 traded at 72.15.
What Else Was Going On In The World? In 1974, the Irish Republican Army began a bombing campaign in mainland Britain. Richard Nixon became the first U.S. president forced to resign following the Watergate Scandal. The U.S. inflation rate was 11.3%.
Mexican Economic Crisis: The ERISA sets minimum standards for private industry retirement and health plans that protect the individuals participating in those plans.
The law contains each of the following provisions:
- It requires plans to provide participants with updated information on features and funding.
- It establishes minimum standards for participation, vesting, benefit accrual and funding.
- It provides fiduciary responsibilities to plan managers.
- It requires plans to set up a grievance and appeals process for participants.
- In the event of a plan termination, it guarantees payment of certain benefits via the Pension Benefit Guaranty Corporation (PBGC).
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