Is a voluntary plan subject to ERISA?
If a voluntary plan with minimal employer involvement meets the Safe Harbor Criteria, it is not subject to ERISA or its requirements. The Safe Harbor Criteria are: • 100% employee contributions. • Employee participation is completely voluntary. • Employer does not endorse the program. However, the employer may permit the insurer to publicize the program to employees and the employer may collect premiums through payroll deductions and remit premiums to insurer. • Employer receives no consideration for plan implementation. However, reasonable compensation (no profit) is permissible for administrative services rendered for the plan. Additional guidance regarding employer involvement of a Voluntary Safe Harbor plan: • Plan documents should not indicate that the plan is sponsored by the employer. • The employer should not encourage or urge participation in the plan. • Vendor presentations in the workplace are permissible. • Employer may notify employees of the existence of the plan but shou
