ERISA Coverage of Benefit Plans

Summary

This practice note will guide you in identifying employee benefit plans and programs that are subject to regulation under the Employee Retirement Income Security Act of 1974 (ERISA), as amended from time to time. As an advisor to an employer who sponsors one or more employee benefit plans, or as counsel to employees participating in a plan, you need to review carefully the benefits that are being provided to determine ERISA application. If the benefits are subject to ERISA, the employer or employee association sponsoring the plan or arrangement has certain obligations regarding the rights and benefits of employees (and their beneficiaries). If the employer fails to satisfy these obligations, it may face Department of Labor (DOL) enforcement action, civil penalty assessments, and/or participant lawsuits. Therefore, you need to understand which plans are subject to ERISA requirements and which are exempt.