Bank tuition reimbursement from general assets

P/OPINION 76-01




                                                     3(1)



                          February 27, 1976



Dear:

This is in response to your letter dated August 13, 1975,
addressed to, requesting a determination whether your
informal policy supporting the courses and social events
offered by [Institute] is covered under the Employee
Retirement Income Security Act of 1974 (ERISA). I am sorry
we were unable to reply earlier.

The [Institute] is the education and recreation function of
the Association and is organized into local chapters for
the purpose of bringing educational and recreational programs
to area bank personnel. The [Bank] support of the activities of
the [Institute] may include financial and personnel needs for
various activities and programs. According to your telephone
conversation with a member of my staff, the Bank refunds the
tuition paid by Bank employees for successfully completed
courses given by the [Institute]. These payments are made from
the general assets of the Bank which reserves the right to
approve or disapprove each request on its individual merit.

Section 3(1) of the ERISA includes in its definition of an
employee benefit plan "any plan, fund, or program which was
heretofore or is hereafter established or maintained by
an employer ..., 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,...
apprenticeship or other training programs,... scholarship
funds...'' However, section 2510.3-l(k) of regulations
published August 15, 1975 (copy enclosed), excludes from
the term ''employee welfare benefit plan" a scholarship
P/OPINION 76-01




program, including a tuition and education expense refund
program, under which payments are made solely from the
general assets of an employer. The informal policy, of
the Bank, therefore, would not be covered under the
ERISA.

Sincerely,