Compliance Q&A: The ERISA “Church” Plan Exemption

Most employer-sponsored group health plans are subject to the Employee Retirement Income Security Act (ERISA), which includes fiduciary, reporting and other requirements. ERISA allows for two types of employers to be exempted: governmental employers and churches. The “church plan” exemption allows plans established or maintained by a church or those maintained by a “principle purpose organization” to escape being subject to ERISA requirements, but what qualifies under the church plan exemption often requires a legal determination.