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Payroll Practice or ERISA Plan?

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Employer allows broker to promote "voluntary" insurance products (AFLAC type junk) to employees and accommodates payment of premiums via payroll deduction (no employer contribution).

Are these "employee welfare benefit plans" subject to ERISA and requiring filing of 5500s if large enough?

Does it matter whether the premiums are being deducted pre-tax pursuant to a cafeteria plan or after-tax?




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I think you're ok (Google is a wonderful thing people).

However, in a cafeteria plan - "plan" - I think you answered your own question there.

Also, many voluntary benefits you don't want through pre-tax premiums because that makes the benefit taxable.

Kenneth M. Prell, CEBS, ERPA

Vice President, BPAS Actuarial & Pension Services


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