Legal Definitions - governmental employee benefit plan

A governmental employee benefit plan is a program established or maintained by a government entity – whether federal, state, or local – to provide benefits to its employees and their beneficiaries. These plans typically offer benefits such as retirement income, health insurance, life insurance, or disability coverage. A key characteristic is that they are generally exempt from certain federal laws, like the Employee Retirement Income Security Act (ERISA), which apply to most private sector employee benefit plans.

Here are some examples:

• Imagine the New York State and Local Retirement System. This system provides pension benefits to employees of New York State, its local governments, and public school districts. This is a governmental employee benefit plan because it is established and maintained by the State of New York and its subdivisions to provide retirement income for their public sector workforce.

• Consider the City of Springfield's Employee Health Plan, which offers medical, dental, and vision coverage to all its municipal workers, including police officers, sanitation workers, and city hall staff. The city itself funds and administers this plan for its employees. This qualifies as a governmental employee benefit plan because the health insurance program is provided by a local government entity (the City of Springfield) specifically for its employees.

• The Federal Employees Health Benefits (FEHB) Program allows federal civilian employees, retirees, and their families to choose from a wide selection of health insurance plans. The U.S. Office of Personnel Management (OPM) oversees this program. This is a governmental employee benefit plan because it is a health benefits program established and maintained by the U.S. federal government for its civilian workforce.