Voluntary Benefits ERISA Exclusion Safe Harbor

Summary

This practice note addresses the exemption for certain voluntary plans from the statutory and regulatory requirements applicable to welfare benefit plans under the Employee Retirement Income Securities Act of 1974, as amended (ERISA). Department of Labor (DOL) regulations at 29 C.F.R. § 2510.3-1(j) set forth a safe harbor that identifies when a program providing welfare benefits is exempt from ERISA requirements (the Voluntary Plan Regulations). Programs that satisfy the regulatory exemption are not covered by ERISA because they are not treated as ERISA welfare plans. Therefore, an employer whose employees benefit under the program need not comply with ERISA's reporting, disclosure, and other requirements related to the voluntary program.