What type of employee welfare plans are not subject to ERISA regulations?

• A. Government plans
• B. Self-funded plans
• C. Church plans
• D. Health savings accounts

Answer: (C)

ERISA applies to private-sector welfare benefit plans, but church plans have a specific exemption. A church plan is one established and maintained for its employees by a church or by a convention or association of churches. Because of this status, ERISA does not regulate the plan, even though it may provide welfare benefits to church employees. This exemption is what makes church plans not subject to ERISA regulations.

To add context, government plans are also generally not covered by ERISA since they’re created by government entities, and health savings accounts aren’t ERISA plans because they’re individual accounts linked to a high-deductible health plan and governed mainly by tax rules, not ERISA. But the choice focused on church plans because of the ERISA-specific exemption for church plans.