Back to Federal guidance
City health insurance plan as governmental plan
Summary A city negotiated, paid for, and administered a health insurance plan for its employees. DOL concluded that the plan was established and maintained by a political subdivision and therefore was a governmental plan exempt from ERISA Title I.
Document
Federal opinion letter
Agency
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Document number
P/OPINION 76-123
Date issued
December 10, 1976
Status
Unknown
EBSA's index does not mark withdrawn or superseded opinions; still posted on dol.gov as of 2026-10-26.
Status last verified October 26, 2026
Topics
Apply this to your situation
This page explains the general guidance. Ask about your specific situation and see what current federal labor law says, with citations.
About this page: The full text below is the official document from U.S. Department of Labor, Employee Benefits Security Administration (EBSA). Ezel adds the plain-English summary and tracks the document's status. The official source linked on this page is authoritative for any reliance.
P/OPINION 76-123
3(32)
December 10, 1976
Dear :
This is in reply to the letter dated May 14, 1976, from
Mr. (x), former City Auditor, requesting a determination
under the Employee Retirement Income Security Act of 1974
(ERISA). I am sorry we could not reply sooner.
According to Mr. (x)'s letter and your conversation with a
member of my staff, the City of (named) maintains a health
insurance plan with (named). The City negotiates and
holds the contract, pays the entire premium and
administers the plan.
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, it 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).
Sincerely,
What does federal law require in your situation?
Ezel checks current federal labor law against your facts and answers with citations.
Opens in Ezel Pro.
- Checks the law as it stands today, not only this page
- Cites every source it relies on, so you can verify it
- Chat, drafting and research in one workspace