Forty years ago this week, bell-bottom jeans were still in style, the Vietnam War was coming to a close, and Watergate was still riveting the nation.
Against this backdrop of social unrest, there was also a focus on broken pension promises. Back then, tens of thousands of people were losing their pensions because few laws existed to regulate pension plans. A worker could lose his pension after working at the same company for 25 years because he left the company before turning 65. Employers could fritter away pension money on bad investments or bogus transactions often without facing any consequences. Bankrupt plans could leave workers and retirees with only a fraction of the benefits they earned and no recourse against their employer. In response, Congress passed the Employee Retirement Income Security Act of 1974, or ERISA, to put an end to such abusive practices.
Click here to read more at the Pension Rights Center.