Small insured employee benefit program under ERISA

P/OPINION 76-116
                                                3(1)


                    October 30, 1976


Dear          :

Thank you for your letter concerning the Employee
Retirement Income Security Act of 1974 (ERISA). We regret
that we were unable to respond to your inquiry earlier.

You state that your organization maintains an insured
benefit program providing accident, medical and life
protection for its employees who number not over ten. You
ask what, if any, are your responsibilities under title I
of the ERISA.

For the purposes of title I of the Act, section 3(1)
thereof defines an "employee welfare benefit plan" as any
plan, fund or program which has been established by an
employer or employee organization for the purpose of
providing for its participants or their beneficiaries,
through the purchase of insurance or otherwise, among
other things, medical, surgical and hospital care as well
as benefits in the event of accident or death.

We have concluded that your benefit program is an
"employee welfare benefit plan" covered by title I of the
ERISA, and it is subject to the provisions of parts 1, 4
and 5 thereof.

However, section 2520.104-20 of the enclosed regulation
that was published in the Federal Register on August 15,
1975, provides a limited exemption from the reporting and
disclosure requirements for certain small welfare plans
such as yours. We suggest that you give this section
careful reading so that you will know the responsibilities
of which you are relieved and those with which you must
comply.

Sincerely,



Enclosure