Dependent Care Reimbursement Plan

[Guest IRISH79]

Is a stand alone dependent care reimbursement plan covered under ERISA?

[oriecat]

According to my EBIA ERISA Compliance book, No.

[Guest IRISH79]

Thank you. I do not have access to that resource (but not for lack of asking).

[J Simmons]

ERISA Title I, sec 3(1) provides, as part of the definition of an ERISA welfare benefit plan,

The terms "employee welfare benefit plan" and "welfare plan" mean any plan, fund, or program which was heretofore or is hereafter established or maintained by an employer or by an employee organization, or by both, to the extent that such plan, fund, or program was established or is maintained for the purpose of providing for its participants or their beneficiaries, through the purchase of insurance or otherwise, (A) ... day care centers, ... .

However, ERISA Opinion Letter 93-25A, 9-3-93 clarifies that if the ER does not provide a day care center and the EE is allowed to choose the care provider the stand-alone DCAP is not an ERISA plan. Also, see ERISA Opinion Letter 91-25A, 7-2-91.