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ERISA Terms To Know

What Is An Employee Welfare Plan?

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Employee Welfare Plans covered by ERISA are any plan, program, or fund that an employer, union, guild, or multi-employer groups maintains for the benefit of its workers or members, to provide:

  • Medical, surgical, or hospital care.
  • Benefits for sickness, accident, disability, or death.
  • Unemployment benefits.
  • Vacation benefits.
  • Apprenticeship and training programs.
  • Day care centers.
  • Scholarship funds.
  • Prepaid legal services.
  • Holiday or severance pay.
  • Retirement plans.

ERISA does not cover plans that only relate to:

  • Recreational, dining, first aid or other facilities - other than day care centers for use by employees or members.
  • Holiday gifts.
  • Sales to employees of articles or commodities of the kind which the employer offers for sale in the regular course of business.

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