29 C.F.R. § 5.27
§ 5.27 “* * * fund, plan, or program”. (29 CFR Part 5)
Operative Text
The contributions for fringe benefits must be made pursuant to a fund, plan or program (sec. 1(b)(2)(A) of the act). The phrase “fund, plan, or program” is merely intended to recognize the various types of arrangements commonly used to provide fringe benefits through employer contributions. The phrase is identical with language contained in section 3(1) of the Welfare and Pension Plans Disclosure Act. In interpreting this phrase, the Secretary will be guided by the experience of the Department in administering the latter statute. (See Report of Senate Committee on Labor and Public Welfare, S. Rep. No. 963, 88th Cong., 2d Sess., p. 5.)
Under 29 CFR Part 5 § 5.27, when employer contributions are made toward fringe benefits on covered contracts, those contributions must flow through some recognized type of arrangement—referred to in the regulation as a "fund, plan, or program." This language is intentionally broad, designed to accommodate the many different structures commonly used to deliver fringe benefits to workers. The regulation draws on the same terminology used in the Welfare and Pension Plans Disclosure Act, and federal administrators look to experience under that statute when interpreting what qualifies.
Plain English — not legal advice.
Property owners and managers operating under covered federal contracts should be aware that § 5.27 requires fringe benefit contributions to be channeled through a recognized fund, plan, or program rather than made informally or outside an established arrangement. Compliant operators typically ensure that any benefit contribution structure they use—whether a pension plan, health fund, or similar vehicle—meets the broad but defined criteria the Department of Labor applies when reviewing such arrangements. Maintaining documentation of the specific plan or program used is a common practice among operators seeking to demonstrate compliance.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Workers covered by contracts subject to 29 CFR Part 5 § 5.27 have an interest in knowing that their employer's fringe benefit contributions must be made through a legitimate fund, plan, or program—not simply promised informally. If contributions appear to be missing or improperly structured, workers can raise this as a concern with the Department of Labor's Wage and Hour Division, which oversees compliance with these requirements. Tenant-rights and worker-advocacy organizations can help individuals understand what records to request and what general enforcement paths exist under this provision.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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