Celebrating 50 Years of ERISA: An Interview With Phyllis Borzi

International Foundation of Employee Benefit Plans [IFEBP]

The traditional 50th anniversary gift is gold, and the latest Talking Benefits podcast episode shined just like the glittery metal, paying homage to the Employee Retirement Income Security Act of 1974 (ERISA). ERISA was signed into law by Gerald Ford almost 50 years ago on September 2, 1974. My colleague, Julie Stich, CEBS, VP of content at the International Foundation, had an opportunity to sit down with the Honorable Phyllis Borzi, assistant secretary of labor of the Employee Benefits Security Administration (from 2009 to 2017) for an episode on all things ERISA. Tune in for the full episode after reading a recap below.

But first, let’s take a trip down ERISA’s memory lane.

According to Julie, ERISA’s principal sponsor, Senator Jacob Javits, once said he considered it to be “the greatest development in the life of the American worker since Social Security.” The law has had a profound impact on the benefits industry.

The impetus behind the law was broken pension promises occurring in the 1960s, including Studebaker closing its South Bend, Indiana plant in 1963 and not providing pensions to their employees as promised. President John F. Kennedy had created the President’s Committee on Corporate Pension Plans in 1961; they issued their report in 1962. Senator Javits introduced pension reform legislation in 1967. The problem caught the public’s attention with the release of the 1972 Peabody Award–winning documentary called Pensions: The Broken Promise. Public hearings were held, legislation advanced, and the bill was signed in September 1974.

The ERISA anniversary podcast episode offers the unique perspective of Ms. Borzi, who has been part of the benefits legislative and regulatory world for her entire career. Julie and Ms. Borzi talked about ERISA and its impact—both 50 years ago and today. The episode covers:

• The most important impact of ERISA
• The main weaknesses of the law
• Post-ERISA trends tied to pension and retirement plans
• Trends tied to health and welfare plans
• Future issues we should be watching.

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