Information Regarding The Legal Premise Of This Concept

NMB strongly encourages any prospective employer representative, self funded employer or any employer contemplating self funding for the first time, to research the legal premise under which such plans are established. The following information should be helpful in this regard. Individual Employer Self-Funded Plans are provided for by ERISA.

The specific title and sections that should be of interest are:

FEDERAL ENABLING AND REGULATORY STATUTES
Title 29 United States Code;
Section 1001 and following
Section 1002 (Applicable Definitions)
Section 1144 (Federal Preemption)

IMPORTANT INFORMATION

The NATIONAL MEDIA BENEFITS plans are self-funded plans governed by an ERISA trust that files reports with the U.S. Department of Labor. Each employer establishes a Single Employer Trust (SET) so that the plans do not fall under Multiple Employer Welfare Arrangement (MEWA) regulations. The Single Employer Self Funded Plans described in this material must be adopted by one employer, only, and legally established by that employer. Any employer adopting such a plan must meet the definition of "employer" as determined under the Employee Retirement Income Security Act of 1974 (ERISA) as amended. Contribution reserves are deposited into a Single Employer Trust (SET) to be maintained at an actuarially determined level so as to fully fund the benefits selected. In addition, specific stop-loss reinsurance for larger benefit claims is provided by an A-rated domestic reinsurance company.