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Employee-controlled vacation savings accounts outside ERISA
Summary DOL found employee-funded vacation savings accounts outside both ERISA welfare and pension plan definitions. Neither the employer nor union contributed, and employees could withdraw their own money at any time for any purpose; the conclusion rests on those facts.
Document
Federal opinion letter
Agency
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Document number
P/OPINION 75-03
Date issued
August 5, 1975
Status
Unknown
EBSA's index does not mark withdrawn or superseded opinions; still posted on dol.gov as of 2026-10-26.
Status last verified October 26, 2026
Topics
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About this page: The full text below is the official document from U.S. Department of Labor, Employee Benefits Security Administration (EBSA). Ezel adds the plain-English summary and tracks the document's status. The official source linked on this page is authoritative for any reliance.
P/OPINION 75-03
3(1)✓
3(2)
August 5, 1975
Dear :
This is in reply to your letter dated July 11, 1975,
requesting a determination as to the coverage of your
vacation savings plan under the Employee Retirement
Income Security Act of 1974 (ERISA). Employers
withhold a specified amount from each journeyman’s
and apprentice’s pay and send the money monthly to
the bank where it is deposited into the account of
each employee. Withdrawals may be made at the employee’s
discretion.
Essentially, this plan encompasses individual personal
savings accounts. Neither the union nor the employer
contributes to the account and the employee has complete
control of his own account. He can withdraw the money
at any time and for any purpose, not necessarily for a
vacation. The plan would not come within the definition
of either an “employee welfare benefit plan” or an
“employee pension benefit plan” as contemplated in sections
3(1) and 3(2) of the ERISA. The plan, therefore, would
not be covered under this Act.
Sincerely,
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