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Union provided welfare benefits from its treasury - covered by ERISA?


Guest nlipton

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Guest nlipton

Does anyone have any experience with a union providing medical expenditure reimbursement payments for a limited period of time (several months) for employees who are terminated and do not buy COBRA? Such a scheme seems to be covered by ERISA under the literal reading of section 3(1) even though it would be nothing more than a resolution of the union executive board to pay out of the union's general treasury which is constituted of nothing kmmore than union dues and bank interest. Any experience would be appreciated.

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  • 1 month later...

Correct me if I'm wrong but I don't think ERISA applies to government or church entities. I know of some electrical co-ops that are part of a city or county entity that provide post termination benefits, which wouldn't be subject to ERISA.

The union you are speaking of is running a MERP, which is subject to ERISA.

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