Irrigation district pension plan exemption

P/OPINION 75-31


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


                        December 31, 1975

Dear              :

This is in response to your letter requesting a determi-
nation whether the above-named plan is a governmental plan.
We regret the delay in answering.

According to the information furnished by you, the
                Irrigation District (District) is an
irrigation district organized under the laws of the State
of           and as such is a political subdivision of the
State of           . The plan is funded by both employer
and employee contributions (section 7.2) and is administered
by the employer through a Board of Trustees appointed by
the employer (section 10.6).

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
              Irrigation District. 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,