Union accident and death fund under ERISA

P/OPINION 75-47


                                                                4(b)


                        December 14, 1975


Dear           :

This is in reply to your letter requesting an exemption from
the Employee Retirement Income Security Act of 1974 (ERISA)
for the                 Union Local        Accident and Death
Benefit Fund(Fund). It was established and is maintained
pursuant to Article XII and XIII of the Constitution and
By-Laws of the Union. Monies collected for each of these
benefits is first deposited into the General Fund of the
Local and then transferred monthly into the Fund. All claims
must be paid from the Fund. I greatly regret the delay in
answering your correspondence.

You maintain that these benefits are much like a "church
benefit" which is specifically exempted under the ERISA.
However, it is not a "church benefit" that is specifically
exempted under section 4(b)(2) of the ERISA, but a "church
plan", which is one established and maintained for its employees
by a church or by a convention or association of churches.
The Fund, of course, does not meet this requirement.

Title I of the ERISA applies to an employee welfare benefit
plan if it is established or maintained by any employee
organization representing employees engaged in commerce
or in any industry or activity affecting commerce, for the
purpose of providing for its participants or their beneficiaries,
through the purchase of insurance or otherwise, benefits
(among others) in the event of accident or death.

Under ERISA, the term "industry or activity affecting commerce"
includes any activity or industry affecting commerce within
the meaning of the Labor Management Relations Act, 1947.
Under this Act parties to an unfair labor practice charge
brought by a plumbers' local have been held to be in commerce
and to affect commerce. Thus, there would be no basis for
holding that Local    does not represent employees engaged in
an industry or activity affecting commerce.
2

P/OPINION 75-47



You also advance the argument that the Fund should be
exempted on the basis of section 4(b)(3), which excludes
plans maintained solely for the purpose of complying
with applicable workmen's compensation laws or unemployment
compensation or disability insurance laws. Since you state
that the accident benefit is payable only when workmens'
compensation is payable, it is an additional benefit. The
plan is not maintained solely for the purpose of complying
with applicable workmen's compensation laws but for the
purpose of supplementing workmen's compensation and, therefore,
cannot be exempted under this provision.

Under the provisions of section 104(a)(3) the Secretary may
by regulations exempt welfare benefit plans from all or part
of the reporting and disclosure requirements. However, there
is not authority to exempt any welfare benefit plan entirely
from the requirements of the ERISA. The Fund is subject
to the provisions of Title I of the ERISA.

Sincerely,