State instrumentality pension plan exemption

P/OPINION 75-37


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


                        December 31, 1975


Dear              :

This is in reply to your letter of July 23, 1975,
requesting a determination regarding the applicability
of the Employee Retirement Income Security Act of 1974
(ERISA) to the pension plan for employees of
Inc.

According to the information furnished by you,
is a wholly-owned instrumentality of the
(state) and, as such, has been ruled by the Internal
Revenue Service to be exempt from Federal income tax.
The pension plan was established unilaterally by
    for its employees. Under the provisions of Article
VIII of the plan indenture, the plan is funded entirely
by the employer (no contributions are required from the
employees) and under the provisions of Article IX the
plan is administered solely by the employer.

Section 4(b)(1) of the 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 pension
plan is established and maintained for its employees by
             a wholly-owned instrumentality of the
(state) 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,