Which employee welfare plan is exempt from ERISA regulations?

The correct response identifies church plans as employee welfare plans that are exempt from the Employee Retirement Income Security Act (ERISA) regulations. Church plans are specifically designed to provide benefits to employees of a church or a convention or association of churches. This exemption is rooted in the intent to allow religious organizations greater flexibility in their operations and benefit offerings without the regulatory burden of ERISA.

Under ERISA, many types of employee welfare plans must adhere to various guidelines, but church plans are among the categories that are allowed to operate outside these strictures, recognizing the unique nature of religious institutions. The intention behind this exemption is to respect the autonomy of churches and their ability to administer their own benefit programs according to their beliefs and practices.

Other types of plans, such as union plans and government employee plans, are subject to specific regulations and protections under ERISA to ensure the interests of employees are safeguarded. Large employer plans, while not inherently exempt, still must comply with ERISA if they meet certain criteria, such as providing welfare benefits. Hence, church plans stand out as the correct answer in this context.