State college disability program as governmental plan

P/OPINION    76-128

                                                   3(32)

                      December 10, 1976



Dear:

Thank you for your letter dated February 3, 1976, and the
information furnished to a member of my staff over the
telephone. I am sorry we could not reply sooner.

According to the information furnished, the disability
policy was established and is maintained by the (named)
College (College), a state institution. All employees are
considered employees of (State). The College administers
the program and has complete control over it. You request
a determination whether the program is a governmental plan
and, therefore, exempt from coverage under the Employee
Retirement Income Security Act of 1974 (ERISA).

Section 4(b)(1) of the ERISA exempts governmental plans
from coverage under title I of the ERISA. 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
disability policy of the College is established and
maintained by the College, an agency or instrumentality 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,