No participation-standard phase-in variance

P/OPINION 75-17


                                                                3(2)


                        December 17, 1975


Dear              :

This is in reply to your communication dated September 22,
1975, regarding an inquiry received by you from
                         . [He] states that he has a
client to whom the requirements of the Employee Retirement
Income Security Act fo 1974 (ERISA) as they pertain to
inclusion of employees with just one year of service rather
than the present requirement of four will inflict a severe
hardship and almost certainly discontinue his retirement
program and inquires as to the requirements and possibilities
of obtaining a three or four year delay phasing in period
for his client in meeting the participation requirements of the
ERISA.

Although, under certain circumstances, the ERISA provides
the Secretary of Labor with authority to grant temporary
variances with respect to vesting and the accrual of benefits
(section 207); to extend the years required to amortize
any unfunded past service liability in the case of defined
benefit pension plans (section 304): and to prescribe an
alternative method of satisfying the reporting and disclosure
requirements for pension plans (section 110), the Secretary
of Labor has no authority to grant a variance with respect
to any pension plan, as defined in section 3(2), from the
participation standards.

Under the circumstances, it is not possible for the
Secretary of Labor to grant a three or four year phasing
in delay of the minimum participation standards as requested
by          on behalf of his client.

I hope this information will be helpful in replying to
              . As requested, your correspondence is
returned herewith.

Sincerely,