Simple English definitions for legal terms
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A welfare plan is a type of employee benefit plan that provides various benefits to employees, officers, and advisers of a company. It can include medical, surgical, or hospital care, benefits in the event of sickness, accident, disability, death, or unemployment, vacation benefits, apprenticeship or other training programs, daycare centers, scholarship funds, prepaid legal services, or holiday and severance benefits.
These examples illustrate how welfare plans can provide various benefits to employees, such as retirement benefits, stock options, and other incentives. They can be either defined-benefit plans or defined-contribution plans, depending on how the benefits are determined and distributed.