Teachers’ charitable relief fund outside ERISA

                   U.S. DEPARTMENT OF LABOR
                   Pension and Welfare Benefit Programs
                          Washington, D.C. 20216

FEB 18 1977

                                                          OPINION 77-24 A

                                                          3(1)
                                                          3(32)
Richard B. Covey, Esquire
Carter, Ledyard, and Milburn
[Recipient address omitted]

Dear Mr. Covey:

This is in reply to your letter concerning the Employee Retire-
ment Income Security Act of 1974 (ERISA). We regret that the
volume of correspondence has resulted in a delay in responding.

You state that the Mary Muldoon Fund (the Fund) is maintained
by New York State United Teachers (Teachers) to provide assist-
ance to needy members. Teachers is an unincorporated associa-
tion of teachers and other educators employed in New York State.

The Fund derives its funding through contributions from Teachers,
voluntary contributions, bequests, and income from the principal
of the Fund. The Fund is administered by a Fund Committee which
makes grants on the basis of facts submitted by the applicant.
Grants may be in the form of monthly allowances to augment a
retirement benefit too low to maintain a reasonable standard of
living or a lump sum payment to cover an emergency situation.
You question whether the Fund is subject to the requirements of
ERISA.

The Department of Labor has adopted an advisory opinion proce-
dure (ERISA Procedure 76-1, copy enclosed) which describes the
general procedures for issuing information letters and advisory
opinions under ERISA. Pursuant to ERISA Procedure 76-1, this
letter is to have the effect of an advisory opinion.

Sections 3(1) and 3(2) of ERISA define the term “welfare plan”
and “pension plan” to include programs established or maintained
by employee organizations. However, the Fund provides a charita-
ble benefit in the event of financial difficulty rather than one
of the benefits enumerated in section 3(1) and 3(2). Therefore,

                                                        -   2

                                                 OPINION 77-24   A

the Fund is neither a welfare plan nor a pension plan and
is not subject to the provisions of Title I of ERISA.

Sincerely,



Fred W. Stuckwisch
Director
Office of Regulatory Standards
  and Exceptions



Enclosure