What four elements must exist for an employee welfare benefit plan under ERISA?
A plan, fund, or program;established or maintained by an employer;
for providing specified benefits;
to participants or beneficiaries
What does “plan, fund, or program” mean under ERISA?
An ongoing administrative scheme to provide benefits
Why is employer involvement critical to ERISA coverage?
ERISA generally applies only to plans established or maintained by an employer
How may welfare benefits be provided under ERISA?
Through insurance or otherwise
Who receives benefits under an ERISA welfare plan?
Participants and beneficiaries
What types of benefits are ERISA welfare benefits?
Medical, disability, life, vacation, training, daycare, scholarship, and prepaid legal benefits
How do courts determine whether a plan exists under ERISA?
Whether a reasonable person can identify benefits, beneficiaries, funding, and procedures
Must a plan be formally written to exist under ERISA?
No, a plan may exist based on employer practice
What employer actions indicate a plan exists?
Employer contributions or administering benefits
Which government plans are excluded from ERISA?
Federal, state, and local government plans and agencies
Are church plans subject to ERISA?
No, church plans are exempt
Are workers’ compensation and unemployment plans covered by ERISA?
No, plans complying with state-mandated programs are excluded
Are plans maintained outside the U.S. for nonresident aliens subject to ERISA?
No
Are plans covering only self-employed individuals subject to ERISA?
No
Are plans covering only owner-spouses subject to ERISA?
No
Are payroll practices treated as ERISA plans?
Generally no, if paid from general assets
Is short-term disability paid from general assets an ERISA plan?
No
When does a payroll practice become an ERISA welfare plan?
If benefits exceed normal compensation or are insured
Which absences qualify as payroll practices not subject to ERISA?
Vacation, holidays, military duty, jury duty, sabbaticals, training
What four conditions must be met for the DOL voluntary plan safe harbor?
No employer contributions; voluntary participation; limited employer role; no employer endorsement
What is employer endorsement?
Expressing approval or encouraging participation in a voluntary plan
What actions are allowed without endorsement?
Publicizing, collecting premiums, remitting premiums, maintaining enrollment
What warning does DOL give regarding FMLA and voluntary plans?
Employer should not pay employee premiums during FMLA leave
Who is the plan administrator?
Person responsible for ERISA reporting and disclosures
