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Employee Benefit Plan
Practical Law Glossary Item 6-502-2678 (Approx. 3 pages)
Glossary
Employee Benefit Plan
Either an employee pension benefit plan or an employee welfare benefit plan or a plan which is both.
Title I of the Employee Retirement Income Security Act of 1974 (ERISA) covers most private sector employee benefit plans. ERISA-governed employee benefit plans are voluntarily established and maintained by an employer, an employee organization, or jointly by one or more such employers and an employee organization. Employee benefit plans are established and maintained for varying purposes:
- Employee pension benefit plans provide retirement income or to defer income until termination of covered employment or beyond.
- Employee welfare benefit plans provide health benefits, disability benefits, death benefits, prepaid legal services, vacation benefits, scholarship funds, apprenticeship and training benefits, or other similar benefits.
In general, ERISA does not cover governmental plans or church plans, or plans which are maintained solely to comply with applicable workers compensation, unemployment, or disability laws (see Practice Note, Church Plans: Health and Welfare Plan Compliance and Litigation). ERISA also does not cover plans maintained outside the United States primarily for the benefit of nonresident aliens or unfunded excess benefit plans.