Which statement about church plans is true?

• A. They are subject to ERISA regulations
• B. They are regulated as private insurers
• C. They must provide an Outline of Coverage
• D. They are not subject to ERISA regulations

Answer: (D)

Church plans are exempt from ERISA because they are established and maintained by a church or its religious organizations to provide employee benefits. That exemption means they do not fall under ERISA’s typical fiduciary, disclosure, or reporting requirements. So the statement that they are not subject to ERISA regulations is true.

Keep in mind this doesn’t mean there are no rules at all—church plans can still be regulated by state insurance authorities or face IRS tax rules for how the plan is treated, but their regulation path is separate from ERISA. The other options conflict with this exemption: they are not governed by ERISA, they aren’t regulated as private insurers under ERISA, and providing an Outline of Coverage isn’t the controlling requirement for church plans.