City hospital plan reporting exemption

P/OPINION    76-122

                                                   3(32)

                      December 10, 1976



Dear           :

Thank you for your letter dated April 12, 1976, requesting
a determination under the Employee Retirement Income
Security Act of 1974 (ERISA). I am sorry we could not
reply sooner.

According to your letter and a conversation with a member
of my staff, the City of (named) has established and
maintains a noncontributory group hospital and surgical
plan for its employees. The City has a contract with
(named). Dependents may be covered by employee con-
tributions. You would like to know if the City has any
reporting requirements under the ERISA.

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 above, it is concluded that the Plan is
established and maintained for its employees by (City), a
political subdivision of (State). Accordingly, the Plan
is a governmental plan as defined in section 3(32) of the
ERISA, and is exempt from coverage under Title I pursuant
to the provisions of section 4(b)(1). There are no
reporting requirements under the ERISA, insofar as the
Department of Labor is concerned.

Sincerely,