Randy Watson Posted November 21, 2005 Share Posted November 21, 2005 Are split dollar life insurance plans generally subect to ERISA? There does not seem to be much guidance on this issue. I came across a D.C. district court case from earlier this year that says that they are not subject to ERISA if there is no ongoing administrative scheme. Is it that simple? Link to comment Share on other sites More sharing options...
Kirk Maldonado Posted November 22, 2005 Share Posted November 22, 2005 I seem to recall that there is at least one DOL Advisory Opinion addressing this issue. Kirk Maldonado Link to comment Share on other sites More sharing options...
Guest gdburns Posted November 22, 2005 Share Posted November 22, 2005 Split Dollar is not an insurance plan. It is a method of paying for insurance policies. The reason for using this method of funding an insurance policy sometimes needs no "plan". If no "plan"is needed then there usually is not enough continuing employer involvement nor enough administrative services needed from the employer to cause it to be ERISA governed. For example using it to fund coverage on 1 or 2 key employees. There is nothing required from the employer on an ongoing basis and if the selection of carrier was done either by or mainly by the covered employees, there is probably nothing that would cause the arrangement to be either a "plan" or be ERISA. I use the term "plan" to mean formal setting out of objectives with rules and conditions etc. Link to comment Share on other sites More sharing options...
Guest mjb Posted November 22, 2005 Share Posted November 22, 2005 There are very strange cases on this issue. In one case the court held that the death benefit was exempt from ERISA but the cash value portion was a top hat plan. Link to comment Share on other sites More sharing options...
Guest Ry Benefits Posted May 21, 2007 Share Posted May 21, 2007 I have administered split dollar programs for years. They are ERISA plans. However, they are typically either small welfare plans or top hat plans and as a result are exempt from all reporting and disclosure requirements. Typically, the only requirement is a SPD is made available upon request by the DOL. Link to comment Share on other sites More sharing options...
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