Employers can offer reasonably priced long term disability insurance to their employees as an employee benefit, which is how the vast majority of us obtain LTD insurance. Congress enacted the Employee Retirement Income Security Act (ERISA) in 1974 to regulate and protect employee benefits offered by employers.
LTD Plans Not Subject to ERISA
The ERISA statute excepts five types of plans from coverage under the statute in the “Coverage” section found at 29 U.S.C. § 1003(b): (1) government plans; (2) church plans; (3) plans maintained solely for the purpose of complying with applicable workmen’s compensation laws or unemployment compensation or disability insurance laws; (4) plans maintained outside of the United States primarily for the benefit of persons substantially all of whom are nonresident aliens; and (5) excess benefit plans.
Private Disability Insurance Policies
Disability Plans Not Subject to ERISA
Disability Plans Not Subject to ERISA. The ERISA statute excepts five types of plans from coverage under the statute in the “Coverage” section found at 29 U.S.C. § 1003(b): (1) government plans; (2) church plans; (3) plans maintained solely for the purpose of complying with applicable workmen’s compensation laws or unemployment compensation or disability insurance laws; (4) plans maintained outside of the United States primarily for the benefit of persons substantially all of whom are nonresident aliens; and (5) excess benefit plans.