Small remembrances and gifts outside ERISA welfare plans

              Pension and Welfare Benefit Programs
                     Washington, D.C. 20216




Mr. E. J. Green
Duncan Welfare Club                                  OPINION 77-25 A
[Recipient address omitted]                                3(1)

Dear Mr. Green:

This is in reply to your letter concerning the Employee
Retirement Income Security Act of 1974 (ERISA). We
regret that the volume of correspondence has resulted
in a delay in responding.

You state that the Duncan Welfare Fund (the Fund) is
a tax-exempt benevolent and charitable organization
established to provide remembrances such as a flower
fund for members and dependents, gifts to members
when sick or in the hospital, aid to members in need
of groceries or clothing, distribution of Christmas
baskets and contributions to the United Fund. You
question whether the Fund is subject to the require-
ments of Title I of ERISA.

The Department of Labor has adopted an advisory opinion
procedure (ERISA Procedure 76-1, copy enclosed) which
describes the general procedures for issuing informa-
tion letters and advisory opinions under ERISA.
Pursuant to ERISA Procedure 76-1, this letter is
to have the effect of an advisory opinion.

Section 2510.3-1 of regulations issued by the
Department on August 15, 1975 clarifies the defini-
tion of "welfare plan" and identifies certain
practices which do not constitute such plans.
Paragraph (g) of that section indicates that, for
purposes of Title I, the term "welfare plan" shall
not include a program under which contributions are
made to provide remembrances such as flowers, or a
small gift to members on occasions such as sickness,
hospitalization or death.

Mr. E. J. Green                                              - 2
                                                  OPINION 77-25 A



The Fund qualifies as a program established for the purposes
enumerated in section 2510.3-1(g). Therefore, the Fund will
not be deemed a welfare plan and is not subject to the provisions
of Title I of ERISA.

Sincerely,


Fred W. Stuckwisch
Director
Office of Regulatory Standards
  and Exceptions



Enclosure