Which of the following is potentially exempt from ERISA if certain criteria are met?

• A. Pension plan
• B. Voluntary insurance if certain criteria are met
• C. 401(k) plan
• D. Health savings account

Answer: (B)

ERISA coverage depends on how the benefit is set up and who, if anyone, funds and administers it. Most private-sector pension and welfare plans are subject to ERISA, with the employer having a fiduciary role, and with plan documents, funding, and reporting requirements. But there is an exception for benefits that are truly voluntary and employee-paid, where the employer’s involvement is limited to offering the option and nothing more—no funding, no fiduciary duties, no ongoing plan administration. In that scenario, the voluntary insurance arrangement can be exempt from ERISA because it isn’t an employer-established or maintained benefit plan.

Pension plans and 401(k) plans are the classic ERISA plans because they’re typically established and funded or administered by the employer with fiduciary responsibilities. Health savings accounts, while related to health benefits, are not standard ERISA plans in the way traditional welfare plans are, and the exemption focus is on those voluntary, employee-paid options.