ERISA Plan Compliance: Determining Applicability and Exemptions
This compliance overview examines the Employee Retirement Income Security Act of 1974 (ERISA), a federal law establishing minimum standards for employee benefit plans in the private sector. It clarifies which employers and welfare benefit plans are subject to ERISA, noting that private-sector employers of all sizes are generally covered, while governmental and church employers are exempt. The document also details specific types of welfare benefits that fall under ERISA, whether insured or self-funded, such as medical, dental, and life insurance. Furthermore, it outlines key exemptions from ERISA, including certain payroll practices and voluntary plans, with strict criteria for qualifying for these safe harbors. The text emphasizes the serious consequences of non-compliance and the protections afforded to employers under ERISA for covered plans.
