In simple terms, the exclusion removes such compulsion from the legal bindings of the company. It means it is not mandatory for the company to pay a security amount to the employee on his retirement.
Under the ERISA Act of 1974, fiduciaries may be held personally responsible for the mismanagement of employee benefit plans. ERISA regulates not just retirement plans, but virtually all employer plans that provide employee benefits, including health, life, profit sharing, disability, and employee leave. Although ERISA does not require employers to establish benefit plans for their employees, it sets out minimum standards for these plans, including a clear code of conduct for fiduciaries who are charged with managing and overseeing employee benefit plans and programs.
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