Is a WBP Subject to the Rules of ERISA?
A welfare benefit plan that receives employer contributions and covers common-law employees is subject to Title 1 of ERISA (the Employee Retirement Income Security Act of 1974). Under these rules, the employer must prepare a Summary Plan Description, to be filed with the Department of Labor and distributed to the plan participants. Additionally, the trustee must generally file IRS Forms 5500 annually, to report on the financial aspects of a plan. The trustee of a WBP is subject to all of the fiduciary, disclosure and reporting rules of ERISA.
