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Mercy Providence hospital benefit plans as church plans

Summary A hospital asked whether its retirement and health plans were church plans. EBSA agreed with a favorable IRS private ruling to the extent that each plan’s current structure and operation matched the facts given to the IRS. The opinion addresses those two plans and their represented facts.
Document
Federal opinion letter
Agency
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Document number
Advisory Opinion 1996-17A
Date issued
September 17, 1996
Status
Unknown
EBSA's index does not mark withdrawn or superseded opinions; still posted on dol.gov as of 2026-10-24.
Status last verified October 24, 2026

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The current status of this document is unclear
EBSA's index does not mark withdrawn or superseded opinions; still posted on dol.gov as of 2026-10-24. It may no longer reflect the agency's current position. Treat this page as historical context, not current guidance, and verify current law before relying on anything here.
About this page: The full text below is the official document from U.S. Department of Labor, Employee Benefits Security Administration (EBSA). Ezel adds the plain-English summary and tracks the document's status. The official source linked on this page is authoritative for any reliance.

U.S. Department of Labor, Employee Benefits Security Administration
Advisory Opinion 1996-17A
September 17, 1996

[Recipient address omitted]

Dear Mr. Kline:

This replies to your request for guidance concerning the Retirement Plan for Employees of Mercy Providence Hospital ("Retirement Plan") and the Mercy Providence Hospital Group Health Plan ("Health Plan"). Specifically, you requested the views of the Department of Labor (the "Department") as to whether the Retirement and Health Plans are church plans within the meaning of section 3(33) of Title I of the Employee Retirement Income Security Act of 1974 ("ERISA").

You submitted to the Department documentation about each Plan, including a private letter ruling recently issued by the Internal Revenue Service ("IRS") to the Plans. That private letter ruling responded favorably to the request that the IRS conclude, based on representations provided by the Plans, that they constituted church plans within the meaning of section 414(e) of the Internal Revenue Code ("Code"). As you know, section 414(e) of the Code defines the term "church plan" using language that is virtually identical to ERISA section 3(33).

To the extent that each Plan is currently operated in substantially the same manner as was described to the IRS for purposes of obtaining a private letter ruling, we see no reason to disagree with the favorable conclusion reached by the IRS concerning each Plan's status as a church plan. Accordingly, we conclude that, to the extent that the Plans' recent private letter ruling accurately describes their respective structure and operations, each Plan meets the church plan definition in section 3(33) of Title I of ERISA.

This letter constitutes an advisory opinion under ERISA Procedure 76-1. Accordingly, it is issued subject to the provisions of the procedure, including section 10 thereof relating to the effect of advisory opinions.

Sincerely,

SUSAN G. LAHNE
Chief, Division of Coverage
Office of Regulations and
Interpretations

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