29 CFR 2510.3-1

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Welfare arrangements not considered plans

Group Insurance

Department of Labor ("DOL") regulations for ERISA provide that employers will not be considered ERISA plan sponsors if:

  • No contributions are made by the employer or an employee organization (e.g., union);
  • Employee participation is completely voluntary;
  • The employer does not endorse the program;
  • The employer's sole function is to collect premiums and to permit insurers to publicize the program; and
  • The employer receives no consideration in connection with the program (other than reasonable compensation without profit for administrative services actualy provided).

See Labor Reg. § 2510.3-1(j).

Guidance

Related Links

29 CFR 2510.3-2 (Pension arrangements not considered plans)