117 T.C. No. 19
UNITED STATES TAX COURT
THE BOARD OF TRUSTEES OF THE SHEET METAL WORKERS’
NATIONAL PENSION FUND, IN ITS CAPACITY AS PLAN
ADMINISTRATOR, Petitioner v. COMMISSIONER OF
INTERNAL REVENUE, Respondent
Docket No. 6157-00R. Filed December 4, 2001.
PP is a multiemployer pension plan established in
1966 to benefit employees in the sheet metal industry.
A second, separate fund (C) was established in 1985 to
provide 3-percent cost of living adjustments (COLAs) to
most of PP’s participants. For 1985 through 1990, C’s
assets were insufficient to pay the 3-percent benefit,
and PP made “ad hoc” payments to each of its
participants who was eligible that year to receive a
benefit from C. The ad hoc payment equaled the amount
that, in combination with the benefit payable from C,
equaled the 3-percent COLA. PP’s plan was amended in
March 1992 to add a COLA as of Jan. 1, 1991, equal to
the difference between the 3-percent COLA and the
portion of that amount paid by C. In October 1992,
PP’s plan was restated as of Jan. 1, 1991, to provide
for a flat 2-percent COLA that was not dependent on the
amount paid by C and that was payable to all eligible
employees without regard to whether the provision was
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