- 11 -
By contrast, petitioners contend that petitioner received
the entire account balance from the Retirement System when he
received the Transfer Refund.11 Therefore, petitioners conclude
that the "balance to the credit" requirement of section
402(e)(4)(A) is satisfied.
We begin our analysis with section 402(e)(4)(C). That
section provides, in relevant part, as follows:
(C) Aggregation of certain trusts and plans.--For
purposes of determining the balance to the credit of an
employee under subparagraph (A)--
(i) all trusts which are part of a plan shall
be treated as a single trust, all pension
plans maintained by the employer shall be
treated as a single plan * * * . [Emphasis
added.]
During the years in issue, the State of Maryland maintained
both the Retirement System, in which petitioner participated
until March 1, 1990, and the Pension System, to which petitioner
transferred effective as of that date. Accordingly, in order to
decide whether petitioner received the "balance to the credit",
we must treat the Retirement System and the Pension System as a
single pension plan. Sec. 402(e)(4)(C).
Under Maryland law, petitioner's annuity under the Pension
11 Respondent appears to concede implicitly that the
Transfer Refund included all of petitioner's contributions and
the earnings thereon. Cf. Wheeler v. Commissioner, T.C. Memo.
1993-561 (a member of the Retirement System did not receive the
"balance to the credit" upon receiving a Transfer Refund; a
portion of the member's contributions was transferred from the
Retirement System to the Pension System).
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