Which of the following plans is exempt from ERISA?

• A. Government plans
• B. Certain church plans
• C. Plans subject to state law including workers' compensation, disability, and unemployment
• D. Foreign plans established primarily for nonresident aliens

Answer: (B)

A church plan is exempt from ERISA because it is established and maintained by a church (or by a convention or association of churches or integrated auxiliaries). ERISA explicitly provides an exemption for church plans, recognizing that religious organizations govern and administer their benefit programs outside the federal ERISA framework. This makes a plan that is truly a church plan outside ERISA’s requirements, even though government plans or plans governed by state law (like workers’ compensation or unemployment) are exempt for different reasons. The key point is that ERISA does not apply to plans that are established and maintained by a church, which is why this option is the correct example of an ERISA exemption.