State valley authority retirement program exemption

P/OPINION 75-30


                                                            3(32)✓
                                                            4(b)(1)


                        December 31, 1975


Dear              :

This will supplement our prior correspondence as to whether
the above described program is covered under the provisions
of the Employee Retirement Income Security Act of 1974
(ERISA).

According to the information furnished by you the
          Valley Authority (Authority) is a political
subdivision of the State of           created by act of the
Legislature of that State. The Authority has established
and maintains a retirement program (Plan) for the benefit
of its employees under which all contributions are made
by the Authority. You inquire whether the Plan is exempt
under the provisions of section 4(b)(1) of the ERISA.

Section 4(b)(1) of the Employee Retirement Income Security
Act of 1974 (ERISA) exempts governmental plans from coverage
thereunder. Section 3(32) defines the term "governmental
plan", in part, to mean a plan established or maintained
for its employees by the Government of the United States,
by the government of any State or political subdivision
thereof, or by any agency or instrumentality of any of the
foregoing.

Based on the foregoing, it is concluded that the plan
is established and maintained for its employees by the
Authority, a political subdivision of the State of
           . Accordingly, it is a "governmental plan" as
defined in section 3(32) of the ERISA, and is exempt from
coverage thereunder pursuant to the provisions of section
4(b)(1).

Sincerely,