waid10 Posted April 22, 2004 Share Posted April 22, 2004 Does anyone know where the basic requirements are located for the establishment of a type of benevolence or hardship fund? Employees want to set up a fund that employees could contribute to. If an employee suffers some sort of hardship (i.e. death of spouse, house burns down, etc.), a committee would evaluate and provide funding assistance to that individual. It seems to me that this type of fund would be a welfare benefit plan under ERISA. Link to comment Share on other sites More sharing options...
Don Levit Posted April 22, 2004 Share Posted April 22, 2004 Looks like a Voluntary Employees' Beneficiary Association (VEBA) could be an answer. "Other benefits" a VEBA may offer are those similar to life, sickness, or accident benefits. A benefit is similar if it is intended to safeguard or improve the health of a member, or it protects against a contingency that impairs a member's earning power. A contingency is an unanticipated event beyond the control of a beneficary. Social, recreational, and cultural benefits for retirees, designed to promote their physical, mental, or emotional well-being are permissible benefits. I would be happy to continue this discussion with you; probably offline would be better. Don Levit Link to comment Share on other sites More sharing options...
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