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In support of her determination that petitioner did not
receive the "balance to the credit" when he transferred from the
Retirement System to the Pension System, respondent relies on the
fact that petitioner's years of creditable service under the
Retirement System carried over to the Pension System, see Md.
Ann. Code, art. 73B, sec. 115(4) (1988), and that those years of
service increased the monthly annuity benefit to which petitioner
is entitled.
By contrast, petitioners contend that petitioner received
the entire account balance from the Retirement System when he
received the Transfer Refund.9 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.]
9 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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