State and local governmental retirement plans are notoriously difficult plans for attorneys to research. Finding accurate up-to-date information on these plans can be difficult because they are generally governed only in part by the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code (Code) but are governed primarily by state statutes, regulations, and local laws. Attorneys representing public employers sponsoring these plans, employees making claims against these plans, and private entities that may be considering investments in these plans must be familiar with the often extensive set of state and local laws governing these plans.

As contrasted with private sector plans, governmental plans tend to be more generous than those paid by private sector plans. The more generous benefits, however, are often subsidized by higher employer contributions than are typical in private sector plans and employee contributions are often mandatory. A portion of the cost of these benefits also falls on taxpayers, which can be a politicized issue.

The terms "governmental plan" or "public employee plan" can refer to:

Of these types of plans, Code Section 401(a) governmental plans and Code Section 457(b) non-qualified plans for state and local governments are the most common.

Governmental plans are not subject to Titles I and IV of ERISA, but they generally remain subject to other ERISA provisions. Many of the Code sections that were added through the enactment of ERISA do not apply to governmental plans, but some do apply, as do the special provisions of Code Section 401(a) that apply only to governmental plans (see Practice Note, State and Local Retirement Plans: Overview: Special Provisions and Exemptions from Code Requirements).

In light of the complex interaction of laws governing state and local retirement plans, attorneys counseling clients dealing with these plans must carefully review the procedural and substantive requirements applicable to these plans.

This Toolkit is a collection of resources to assist attorneys counseling state agencies, public employers, public employees claiming retirement benefits, and other entities with researching the requirements of state and local retirement plans.