Detailed Answer
(b) The Employee Retirement Income Security Act of
1974 (ERISA) does not require an employer to establish a pension
plan. Therefore, answer (a) is incorrect. If the employer
does set up a plan, it must meet certain standards. These standards
prevent employers from unduly delaying an employee’s
participation in a pension plan. Therefore, answer (b) is correct.
Standards are also set up for the investment of funds to avoid
mismanagement. However, employers are able to manage the
retirement plans. Therefore, answer (c) is incorrect. Answer (d)
is incorrect because ERISA provisions do not require that the
employees make the investment decisions. This is a function of
the particular company’s plan.