29 U.S.C. § 1144a | Clarification of church welfare plan status under State insurance law

(a)

In general

For purposes of determining the status of a church plan that is a welfare plan under provisions of a State insurance law described in subsection (b), such a church plan (and any trust under such plan) shall be deemed to be a plan sponsored by a single employer that reimburses costs from general church assets, or purchases insurance coverage with general church assets, or both.

(b)

State insurance law

A State insurance law described in this subsection is a law that—

(1)

section 414(e)(3)(A) of title 26 section 1002(33)(C)(i) of this title requires a church plan, or an organization described in and to the extent that it is administering or funding such a plan, to be licensed; or

(2)

relates solely to the solvency or insolvency of a church plan (including participation in State guaranty funds and associations).

(c)

Definitions

For purposes of this section:

(1)

Church plan

section 414(e) of title 26 section 1002(33) of this titleThe term “church plan” has the meaning given such term by and .

(2)

Reimburses costs from general church assets

The term “reimburses costs from general church assets” means engaging in an activity that is not the spreading of risk solely for the purposes of the provisions of State insurance laws described in subsection (b).

(3)

Welfare plan

The term “welfare plan”—

(A)

means any church plan to the extent that such plan provides medical, surgical, or hospital care or benefits, or benefits in the event of sickness, accident, disability, death or unemployment, or vacation benefits, apprenticeship or other training programs, or day care centers, scholarship funds, or prepaid legal services; and

(B)

section 9832(b)(2) of title 26 section 9832(b)(3) of title 26 does not include any entity, such as a health insurance issuer described in or a health maintenance organization described in , or any other organization that does business with the church plan or organization sponsoring or maintaining such a plan.

(d)

Enforcement authority

Notwithstanding any other provision of this section, for purposes of enforcing provisions of State insurance laws that apply to a church plan that is a welfare plan, the church plan shall be subject to State enforcement as if the church plan were an insurer licensed by the State.

(e)

Application of section

Except as provided in subsection (d), the application of this section is limited to determining the status of a church plan that is a welfare plan under the provisions of State insurance laws described in subsection (b). This section shall not otherwise be construed to recharacterize the status, or modify or affect the rights, of any plan participant or beneficiary, including participants or beneficiaries who make plan contributions.

Pub. L. 106–244, § 2July 10, 2000114 Stat. 499(, , .)

Editorial Notes

Codification

Section was not enacted as part of the Employee Retirement Income Security Act of 1974 which comprises this chapter.

Purpose

Pub. L. 106–244, § 1July 10, 2000114 Stat. 499

“The purpose of this Act [enacting this section] is only to clarify the application to a church plan that is a welfare plan of State insurance laws that require or solely relate to licensing, solvency, insolvency, or the status of such plan as a single employer plan.”

, , , provided that: