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Village employee welfare plan as governmental plan
Summary A village paid all premiums under a welfare benefit contract for its employees and asked whether ERISA imposed obligations. DOL concluded that the village was a political subdivision and the described plan was a governmental plan exempt from Title I.
Document
Federal opinion letter
Agency
U.S. Department of Labor, Employee Benefits Security Administration (EBSA)
Document number
P/OPINION 76-125
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EBSA's index does not mark withdrawn or superseded opinions; still posted on dol.gov as of 2026-10-26.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
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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 76-125
3(32)
December 10, 1976
Dear :
Thank you for your letter dated April 27, 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 your conversation with a
member of my staff, the Village of (named), a
municipality, negotiates a contract with (named) for
certain welfare benefits. The contract covers all
employees and the Village pays the total premium. You
would like to know if the Village has any obligations
under the ERISA.
Section 4(b)(l) 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 plan is
established and maintained for its employees by (Village),
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 section 4(b)(l).
Sincerely,
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