Why does ERISA require a plan to be documented in writing?

The requirement under the Employee Retirement Income Security Act (ERISA) for a plan to be documented in writing primarily safeguards the rights of participants. This documentation is crucial as it outlines the terms and conditions of the benefits provided, ensuring that participants have access to clear information regarding their rights, eligibility, and benefits. By mandating a written plan, ERISA aims to promote transparency, making it easier for participants to understand the provisions and provisions applicable to their retirement or welfare benefits.

Additionally, this requirement helps protect participants from arbitrary changes or misinterpretations of plan rules by employers or plan administrators. Having a formally documented plan serves as a reference point for all parties involved, reducing the potential for confusion or dispute over benefit entitlements.

While other factors such as funding guarantees, tax reporting, and public records are important in the broader context of retirement plans, the core intent of requiring written documentation focuses on the protection and empowerment of the plan participants themselves.