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Voluntary STD Plan welfare plan?


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I don't really do a whole a lot with H&W plans, but have been asked to look at one briefly.

Company offers short term diability insurance to employees. Completely voluntary; paid with after-tax dollars via payroll deduction. Is this a welfare plan subject to ERISA? Trying to determine whether 5500's should have been filed. Well over 100 participants.

Thanks in advance for any guidance.

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I don't really do a whole a lot with H&W plans, but have been asked to look at one briefly.

Company offers short term diability insurance to employees. Completely voluntary; paid with after-tax dollars via payroll deduction. Is this a welfare plan subject to ERISA? Trying to determine whether 5500's should have been filed. Well over 100 participants.

Thanks in advance for any guidance.

I think you have an ERISA plan because the STD program cannot be considered just a payroll practice of continued wages as the EE [corrected] is not bearing all of the cost.

John Simmons

johnsimmonslaw@gmail.com

Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation.

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I think you have an ERISA plan because the STD program cannot be considered just a payroll practice of continued wages as the ER is not bearing all of the cost.

That is my understanding also, but I have read in a few places that plans where participation is voluntary, no contribution is made by the employer, & the employer does not actively sponsor, are not subject to ERISA reporting & disclosure requirements. I m having trouble reconciling for the employer.

Thanks

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I think you have an ERISA plan because the STD program cannot be considered just a payroll practice of continued wages as the ER is not bearing all of the cost.

That is my understanding also, but I have read in a few places that plans where participation is voluntary, no contribution is made by the employer, & the employer does not actively sponsor, are not subject to ERISA reporting & disclosure requirements. I m having trouble reconciling for the employer.

Thanks

I misunderstood or misread your original post. You might qualify for the 29 CFR § 2510.3-1(j) exception. There is a bit more to it, but you might qualify.

John Simmons

johnsimmonslaw@gmail.com

Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation.

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