In order to clarify the definition of an employee welfare benefit plan, the Department issued 29 CFR § 2510.3-1 to describe certain arrangements that do not constitute 'employee welfare benefit plans' within the meaning of section 3(1) of ERISA. Not all employment-based job training and apprenticeship programs, however, are ERISA plans. The term 'employee welfare benefit plan' is defined in section 3(1) of Title I of ERISA to include:Īny plan, fund, or program which was heretofore or is hereafter established or maintained by an employer or by an employee organization, or by both, to the extent that such plan, fund, or program was established or is maintained for the purpose of providing for its participants or their beneficiaries, through the purchase of insurance or otherwise, (A) medical, surgical, or hospital care or benefits, or benefits in the event of sickness, accident, disability, death or unemployment, or vacation benefits, apprenticeship or other training programs, or day care centers, scholarship funds, or prepaid legal services, or (B) any benefit described in section 302(c) of the Labor Management Relations Act, 1947 (other than pensions on retirement or death, and insurance to provide such pensions). The following guidance is intended to promote consistency among the Regional Offices in their enforcement positions on these issues. The Regional Offices have asked whether the use of plan assets for such purposes violates ERISA's exclusive purpose and fiduciary duty requirements. In the course of EBSA's investigations of some apprenticeship and training plans, questions have arisen about the use of plan assets to pay for graduation ceremonies and for advertising expenses.

Graduation party program agenda