Employee Welfare Benefit Plan | Practical Law

Employee Welfare Benefit Plan | Practical Law

Employee Welfare Benefit Plan

Employee Welfare Benefit Plan

Practical Law Glossary Item 0-502-2681 (Approx. 2 pages)

Glossary

Employee Welfare Benefit Plan

As defined under the Employee Retirement Income Security Act of 1974 (ERISA), a plan, fund, or program established or maintained by an employer or employee organization, or both. The purpose of an employee welfare benefit plan is to provide specified benefits, through insurance or otherwise, such as:
  • Medical, surgical, or hospital care or benefits.
  • Benefits in the event of sickness, accident, disability, death, or unemployment.
  • Vacation benefits.
  • Apprenticeship or other training programs.
  • Day care centers.
  • Scholarship funds.
  • Prepaid legal services.
  • Benefits described in Section 302(c) of the Labor Management Relations Act of 1947 (other than pensions on retirement or death and insurance to provide pensions).
(ERISA § 3(1); 29 U.S.C. § 1002(1).)
Examples of employee welfare benefits include cafeteria plans, dental and vision benefits, dependent care, health flexible spending accounts (health FSAs), short- or long-term disability plans, and group life insurance plans.