Puerto Rico welfare plans under ERISA Title I

P/OPINION 75-20


                                                            3(10)✓
                                                            4(a)


                        January 21, 1975


Dear           :

This is in response to your letter of December 24, 1974,
regarding the applicability of the Employee Retirement
Income Security Act of 1974 (ERISA) to an employee
welfare benefit plan maintained in Puerto Rico. Because
the responsibilities for effectuating the legislation
are generally divided between the Department of Labor,
Title I; the Internal Revenue Service, Title I; and
the Pension Benefit Guaranty Corporation, Title IV,
this response is limited to the applicability of Title I.

With certain exceptions not pertinent here, all employee
welfare benefit plans maintained by an employer or
an employee organization whose members are engaged in
commerce between a State and any location outside
thereof, or in any activity affecting commerce, are
covered by Title I of ERISA. The term State is specifically
defined in section 3(10) to include Puerto Rico. However,
all employee welfare benefit plans are specifically exempted
from the requirements of Part 2, Participation and Vesting,
and Part 3, Funding, of the ERISA. Therefore, an
employee welfare benefit plan, including those maintained
in Puerto Rico, are subject to the provisions of Part I,
Reporting and Disclosure; Part 4, Fiduciary Responsibility;
and Part 5, Administration and Enforcement, of the ERISA.

Sincerely,