News & Information

 

FEATURED PRODUCT

Pension and Employee Benefits: Code, ERISA, & Regulations
This series provides an authoritative and comprehensive reference to the full text of benefits-related provisions of the Internal Revenue Code, the full text of ERISA, and related proposed and final regulations, as well as the official IRS and DOL preambles, and Committee Reports.

Learn More »

CCH® PENSION AND BENEFITS — 9/11/07

EBSA reasserts that determination of whether arrangement is MEWA is preempted by ERISA

The determination of whether an arrangement is a multiple employer welfare arrangement (MEWA) is preempted by ERISA, and is, therefore, not determinable under state law, according to an EBSA opinion letter.

A state insurance department persistently claimed that an employee leasing company that maintained a MEWA was offering unlicensed insurance through the MEWA. EBSA previously advised that the determination of whether an arrangement is a MEWA is preempted by ERISA. After a related state regulation was amended, the state justice department again sought to bolster its claim that the medical plan was not a MEWA and that the service company was a single employer. EBSA, however, disagreed, stating that the determination of whether an arrangement is a MEWA is preempted by ERISA, and is, therefore, not determinable under state law. In addition, the determination of whether the plan was a single employer plan for the purposes of ERISA was also preempted.

For more information on this and related topics, consult the CCH Pension Plan Guide.

Visit our News Library to read more news stories.