Archived Insight | March 16, 2020

ERISA-governed Funds: Reimbursing Cancelled Travel?

Is it permissible for an ERISA-governed multiemployer welfare fund to reimburse trustees for unused travel expenses when cancellation occurred outside any applicable refund policy and was due to COVID-19?

Regarding COVID-19 travel cancellations

Many plan trustees are finding they must cancel travel to previously scheduled events for which travel expenses, such as airfare, train fare, or hotel deposits have been paid.

These cancellations are related to the risks of COVID-19 and may occur because the entire event has been cancelled or because the event attendee is part of a high risk group for which travel/attendance of large group gatherings is not recommended. Trustees may find themselves unsuccessful when seeking refunds on these travel cancellations.

Trustees should consult with legal counsel

Trustees should consult with legal counsel and review their existing reimbursement policies. If the original event was a legitimate plan expense, such as attendance at an annual conference or trustee meeting, the trustee expense of nonrefundable travel charges due to COVID-19-related cancellations would seem to be a legitimate plan expense.

Have a question? Get in touch.

We’re to help. Ask anything you like.

More information about COVID-19

Medical Doctor Attending To A Female Patient

Key Factors Impacting Health Plan Cost Trends

Our infographic reveals your health plan costs; with insights from SHAPE’s exclusive data from large U.S. health plans covering over 4 million lives.

Health, Multiemployer Plans, Public Sector, Healthcare Industry, Higher Education, Architecture Engineering & Construction, COVID-19, Pharmaceutical, Corporate

Get the Infographic

Pharmacist Explaining Medication To Woman

What Are the Projected 2024 Health Plan Cost Trends?

COVID's influence on the health system has steadied, as the 2024 Segal Health Plan Cost Trend Survey anticipates ongoing plateaued cost trends.

Health, Multiemployer Plans, Public Sector, Healthcare Industry, Higher Education, Architecture Engineering & Construction, COVID-19, Pharmaceutical, Corporate, Mental Health

Get the survey report

Female Nurse Asks Young Woman Questions For Record

New COVID-19 and Preventive Services Guidance for HDHPs

Learn more about the guidance and its implications for health plan sponsors.

Health, Compliance, Public Sector, Healthcare Industry, Higher Education, Architecture Engineering & Construction, COVID-19, Corporate

Read Full Insight

Explore All COVID-19 Information

We’re publishing regular information on the coronavirus as the situation changes.

Learn More

This page is for informational purposes only and does not constitute legal, tax or investment advice. You are encouraged to discuss the issues raised here with your legal, tax and other advisors before determining how the issues apply to your specific situations.