Employees’ association disability and life benefits

                  U.S. DEPARTMENT OF LABOR
                 Pension and Welfare Benefit Programs
                       Washington, D.C. 20216




                                                        OPINION 77-28   A

    MAR 11 1977                                         3(1)



Mr. Stuart S. Lang
Lester Witte and Company
[Recipient address omitted]

Dear Mr. Lang:

This is in reply to your letter concerning the Employee Retire-
ment Income Security Act of 1974 (ERISA). We regret that the
volume of correspondence has resulted in a delay in responding.
You state that the Employees' Benefit Association (the Associa-
tion) is a nonprofit, tax-exempt corporate association whose
members are employees of Consolidated Freightways and its
subsidiaries. In return for the payment of dues to the Associ-
ation, the members receive time-loss benefits for disabilities
not covered by workmen's compensation as well as group term
life insurance. You question whether the benefit arrangement
of the Association is an employee benefit plan covered by ERISA.

The Department of Labor has adopted an advisory opinion proce-
dure (ERISA Procedure 76-1, copy enclosed) which describes the
general procedures for issuing information letters and advisory
opinions under ERISA. Pursuant to ERISA Procedure 76-1, this
letter is to have the effect of an advisory opinion.
Section 3(1) of ERISA defines the term "welfare plan" to
include any plan, fund, or program which is established or
maintained by an employee organization for the purpose of
providing for its participants various enumerated benefits
including benefits in the event of sickness, accident, disa-
bility or death.

Mr. Stuart S. Lang                                      - 2
                                            OPINION 77-28 A



Section 3(4) of ERISA defines the term "employee organization"
to include "any labor union or any organization of any kind, or
any agency or employee representation committee, association,
group, or plan, in which employees participate and which exists
for the purpose, in whole or in part, of dealing with employers
concerning an employee benefit plan, or other matters incidental
to employment relationships; or any employees' beneficiary
association organized for the purpose in whole or in part, of
establishing such a plan."

Based on the above, we have concluded that the benefit programs
maintained by the Association are "employee welfare benefit plans"
within the meaning of section 3(1) of ERISA. As such, the plans
are covered by ERISA and are subject to Parts 1, 4, and 5 of
Title I which contain the reporting and disclosure, fiduciary
responsibility and enforcement provisions respectively.

Sincerely,



Fred W. Stuckwisch
 Director
 Office of Regulatory Standards
   and Exceptions


Enclosures