City school district welfare plan as governmental plan

P/OPINION 76-126

                                                   3(32)

                   December 10, 1976



Dear          :

Thank you for your letter in reference to coverage of
employee benefit plans of the {City) Public Schools under
the Employee Retirement Income Security Act of 1974
(ERISA). I am sorry we could not reply sooner.

According to your letter and the information on file under
the Welfare and Pension Plans Disclosure Act (WPPDA), the
welfare plan is administered by the School District of the
City of (named), covers all employees under contract, and
is funded solely by the employer. The plan was exempt
from coverage under the WPPDA and you would like to know
if the enactment of the ERISA has modified this
determination in any way.

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 information available, it is concluded that
the plan is established and maintained for its employees
by the (City) School District, an agency or instrumen-
tality of (City). Accordingly, it is a "governmental
plan" 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,