CPB Certified Professional Biller Certification Practice Exam

What is the primary purpose of the Employee Retirement Income Security Act of 1974 (ERISA)?

1. To regulate electronic billing systems

2. To protect employee benefits

3. To enforce debt collection standards

4. To manage federal healthcare programs

The correct answer is: To protect employee benefits

The primary purpose of the Employee Retirement Income Security Act of 1974 (ERISA) is to protect employee benefits. This landmark legislation was established to ensure that employees receive the benefits they are promised by their employers, such as retirement and health plans. It provides a framework for regulating such plans, including guidelines for how they should be administered, reporting requirements, and fiduciary responsibilities for those who manage the plans. By establishing protections for employees, ERISA aims to ensure that funds set aside for retirement and other benefits are safeguarded and distributed fairly. This includes defining the rights of participants in these programs and the responsibilities of the organizations that manage them. It represents a key federal initiative in promoting the financial security of workers and their families. The other options, which involve topics such as electronic billing systems, debt collection standards, and federal healthcare program management, do not pertain to the primary focus of ERISA. Thus, while those areas are important in their own rights, they are not connected to the specific purpose of ERISA.