Advisory Opinion 1975-136

Dear :

This is in reply to your letter dated November 13, 1975, on behalf of                                                   who is concerned about a loan made by the                                          Teachers' Pension Fund (Fund) to                                             City. He would like to know the status of such a loan under the Employee Retirement Income Security Act of 1974 (ERISA). Mr.                                       has also written to the Department of Labor (DOL).

As you may know, government plans are excluded from coverage under ERISA pursuant to section 4(b)(3) of the Act. Although regulations amplifying the definition of "governmental plan" contained in section 3(32) have not been issued, it is my present opinion that the                                                    Teacher's Pension Fund is an exempt governmental plan. If this is so, the DOL would have no jurisdiction over its investments.

The DOL expects to issue regulations with respect to governmental plans early in the new year. After these are issued, if there is any remaining doubt, we will be glad to review the matter again.

I hope this information will assist you in replying to Mr.                                                  . As requested, your correspondence is returned herewith.