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(1) Membership in the holiday pay plan consisted of
petitioner’s employees, with minor exceptions that are not
relevant to our decision.
(2) Members would receive holiday pay benefits for 8 fixed
holidays7 designated by petitioner for each plan year, commencing
with the Memorial Day holiday on May 26, 1986. However, if
petitioner altered the number of fixed holidays designated for a
particular plan year, the plan would only provide holiday pay
benefits for the number of holidays then so designated by
petitioner.
(3) The trustees of VEBA II were to hold, invest, and
distribute the trust fund in accordance with the terms in the
trust agreement. Petitioner was to make an initial contribution
to the trust in 1985, and such additional contributions in
subsequent plan years as petitioner deemed appropriate, to pay
for plan benefits and administrative expenses on a continuing
basis. In the event there was an excessive accumulation of fund
earnings in a particular plan year after payment of plan benefits
and administrative expenses for that plan year, and the
accumulation of fund earnings attributable to that plan year was
not used to pay plan benefits or administrative expenses in the
immediately succeeding plan year, then petitioner would direct
7During 1985, petitioner provided 10 paid holidays to its
employees, of which 8 were fixed holidays on days specified by
petitioner and 2 were floating holidays on days chosen by the
individual employee.
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