Retirement Equity Act of 1984
Definition - What does Retirement Equity Act of 1984 mean?
Retirement Equity Act of 1984 is a law that was sponsored by Congress representative William Clay Sr. of Missouri and which amended the Employee Retirement Income Security Act of 1974 (ERISA). The Act is especially noted for its gender equity in addition to its pension plan reforms.
Insuranceopedia explains Retirement Equity Act of 1984
The Employee Retirement Income Security Act of 1974 addressed a history of poorly funded pension plans for workers. It did not make pension plans mandatory, but once an employer established one, it was subject to government regulation to ensure that pertinent details were disclosed to beneficiaries and that the benefits were disbursed in due time.
The 1984 amendment to ERISA introduced additional rules. One of the most noteworthy is the recognition of maternity and paternity leave. It also lowered the participation age from 25 years of age to 21 based on the fact that many women began working at that age.