What do coverage requirements ensure in retirement plans?

Coverage requirements in retirement plans are designed to ensure that plans do not discriminate against low-paid employees. This principle aims to promote fairness and inclusivity within retirement savings programs, ensuring that all eligible employees, regardless of their salary level, have access to the benefits offered by such plans. By preventing discrimination against lower-income workers, coverage requirements help to enhance participation across a diverse workforce, allowing a broader segment of employees to save for retirement and receive the associated benefits.

The other options do address important aspects of retirement plans, such as equal financial support and cost management, but they do not capture the primary purpose of coverage requirements. Equal financial support does not specifically pertain to the criteria for who can participate in a plan, while low administrative costs relate more to the operational efficiency of the plan rather than its inclusivity. Similarly, sharing investment risks among employees is a different focus and does not directly relate to the non-discrimination principle that coverage requirements aim to uphold.