What was one of the consequences of the ERISA established in 1974?

One of the significant consequences of the Employee Retirement Income Security Act (ERISA) established in 1974 was the introduction of fiduciary requirements for plan administrators. This legislation aimed to protect the interests of participants and beneficiaries in employee benefit plans. By establishing fiduciary standards, ERISA ensures that those who manage and control plan assets act in the best interest of the plan participants and beneficiaries.

These requirements hold plan administrators accountable for their decisions and actions related to the management of retirement plans. They must act prudently and with loyalty to the plan participants, avoiding conflicts of interest and self-dealing. This level of oversight is crucial in promoting transparency and safeguarding employee benefits, which aligns with the overall goals of ERISA to enhance the security of retirement income for American workers.

While other options might suggest various implications related to retirement plans, the assertion that fiduciary requirements were established highlights a core principle that underpins the regulation of retirement benefits, ensuring responsible stewardship of plan assets.