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In order to protect the participants in these plans, the Employee Retirement Income Security Act of 1974 (ERISA), a federal law, establishes minimum requirements for the majority of voluntarily organised retirement and health plans in the private sector.
What are Federal laws?
The body of legislation developed by a nation's federal government is known as federal law. When many political entities, such as states or provinces, unite to establish a federation, they cede most of their individual sovereignty and authority to the federal government while keeping or reserving other, more restricted, authorities. As a result, there are two or more tiers of governance inside a defined geographical area. Federal law is the body of law governing the shared central government.
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