The U. S. Department of Labor today published
proposed rules for determining whether an employee welfare benefit plan is
collectively bargained and therefore is exempt from state regulations governing
multiple employer welfare arrangements (MEWAs).
The proposed rules are intended to alleviate
problems created by certain MEWA operators who attempt to avoid state insurance
regulation by falsely claiming that MEWA is a collectively bargained plan. In
1983, Congress amended the Employee Retirement Income Security Act (ERISA) to
clarify the ability of states to require MEWAs to comply with certain state
insurance laws. The amendments specifically excepted from the MEWA definition
welfare plans that the Secretary of Labor finds to be established or maintained
pursuant to one or more collective bargaining agreements.
The proposed rules being published today were
developed through a negotiated rulemaking process by the ERISA Section 3(40)
Negotiated Rulemaking Advisory Committee. The advisory committee is comprised
of both public and private sector representatives, including representatives of
state insurance commissioners and organized labor. The advisory committee,
created by the department in September 1998, developed a consensus and drafted
suggested text for developing the proposed regulation.
The proposed rule sets forth specific criteria and
factors that if satisfied would constitute a finding by the Secretary of Labor
that a plan is established or maintained pursuant to one or more collective
bargaining agreements. A separate proposed rule, also published today,
describes when a party may obtain, and the procedures for, an administrative
hearing on whether a plan is maintained pursuant to a collective bargaining
agreement for purposes of ERISA section 3(40).
Written comments on the proposed regulations
should be submitted by Dec. 26, 2000 to the Pension and Welfare Benefits
Administration, Room N-5669, U. S. Department of Labor, 200 Constitution Ave.,
N.W., Washington, D. C. 20210, (Attention: Proposed Regulation Under Section
3(40)).
The proposed regulations are scheduled to be
published in the Oct. 27 Federal Register. |