🏥ERISA Exemption for Meta's Employee Benefit Plan Announced
Exemption for Certain Prohibited Transactions Involving Meta Platforms, Inc. (Meta) Located in Menlo Park, CA
Summary
This document provides notice of an individual exemption from certain prohibited transaction restrictions of the Employee Retirement Income Security Act of 1974 (ERISA). The exemption permits Prudential Life Insurance Company of America (Prudential) to reinsure the Meta Platforms Inc. Health and Welfare Benefit Plan (Plan)'s group term life insurance benefits, accidental death and dismemberment benefits, survivor income benefits, supplemental employee term coverage, dependent term life insurance (spouse or domestic partner), dependent term life insurance (children) (the Reinsured Benefits), by entering into a reinsurance contract with Ekahi Insurance Company, LLC (Ekahi), an insurance company that is owned by Meta Platforms, Inc. (Meta or the Applicant). This arrangement is hereinafter referred to as the "Reinsurance Arrangement."
Agencies
- Labor Department
- Employee Benefits Security Administration
Business Impact
$$$ - High
The document outlines a significant exemption from ERISA regulations allowing Meta to adjust health benefits for employees through a reinsurance arrangement. This impacts business owners and executives by potentially increasing their financial obligations (est. $3.85M annually) and compliance with independent fiduciary monitoring. The implications for corporate benefits structure and compliance are noteworthy.