Regional sewage district employee plans exemption

P/OPINION 75-32
                                                  3(32)✓
                                                  4(b)(1)

                        December 31, 1975

Dear              :

This is in response to your letter requesting a determination
whether the plan described therein is a governmental plan.
We regret the delay in answering.

According to the information furnished by you, the
District (District) is a regional sewage authority serving
the City of          and the Towns of          . The
District was created in       by special act of the
General Assembly and is vested with the powers and
authority of a municipality as the term is defined by
the statutory law of      . The District has
approximately 25 employees and carries hospitalization
and health insurance coverage for them with
Blue Cross and           Medical Services and life insurance
coverage with The         Insurance Company            .
Additionally, the employees are participants in a pension
plan known as Fund B of the                  Municipal Employers
Retirement Act. The District's participation in the plan is
also authorized by special act of the         General Assembly.
Both the employees and the District contribute to this pension
plan.

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 above, it is concluded that the hospitalization and
health and life insurance plans are established and maintained
by the           District, a political subdivision of the
government of the State of           . It is further concluded
that the pension plan is also established and maintained by
the           District. Therefore, the plans are "governmental
plans" as defined in section 3(32) of the ERISA, and are
exempt from coverage thereunder pursuant to the provisions
of section 4(b)(1).

Sincerely,