Legal Definitions - government plan

A government plan refers to an employee benefit program, such as a retirement fund or a health insurance scheme, that is established and maintained by a governmental entity for its employees. This includes plans offered by the U.S. federal government, state governments, local governments (like cities or counties), and their agencies or instrumentalities (such as public school districts or municipal utility companies). These plans are typically subject to different legal regulations compared to those offered by private sector employers.

Here are some examples to illustrate this concept:

• Imagine the California Public Employees' Retirement System (CalPERS), which provides retirement and health benefits to over 2 million public employees, retirees, and their families in California. This system is a government plan because it is established and maintained by the State of California and various local government agencies within the state to provide benefits for their public sector workers.

• Consider a health insurance program offered to all employees of the U.S. Department of Veterans Affairs. This program, covering doctors, nurses, administrative staff, and other personnel working for the federal agency, qualifies as a government plan. It is set up and managed by an agency of the U.S. federal government specifically for its workforce.

• Think about a pension fund managed by a city for its municipal employees, such as firefighters, police officers, and sanitation workers. For instance, the New York City Employees' Retirement System (NYCERS) is a government plan because it is established and maintained by the City of New York to provide retirement benefits for its local government employees.