Kirk A. and Ida R. Crandall - Page 6

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               Petitioners also maintain that Mr. Crandall's payroll stubs            
          from Kodak evidence employee contributions to the Plan.  Copies             
          of a sampling of Mr. Crandall's payroll stubs issued by Kodak               
          during his period of active employment show that 60 cents was               
          deducted from his weekly earnings for "Disability."  However, the           
          employee handbook indicates that the weekly deductions of 60                
          cents from Mr. Crandall's earnings were for Kodak's short-term              
          Sickness Allowance Plan, not the Kodak LTD Plan.  According to              
          the employee handbook, the Kodak Sickness Allowance Plan (KSAP)             
          is a short-term benefits plan covering all employees.  For                  
          employees with less than 15 years of service, such as Mr.                   
          Crandall, the KSAP provides continuation of an employee's full              
          base pay for a period of 26 weeks while the employee is unable to           
          work because of sickness, injury, or disability.1  The employee             
          handbook states that "Kodak pays for the cost of the plan [KSAP],           
          however, during [an employee's] first three years of coverage,              
          [the employee] contribute[s] 60 cents per week through payroll              
          deduction."  The corporate documents available to us demonstrate            
          that the 60-cent payroll deductions that Mr. Crandall incurred,             
          until he became disabled in October 1986, were for the short term           
          coverage.  Stipulated correspondence demonstrates that such was             
          the administrative construction of the plan.                                


          1    Mr. Crandall's long term disability benefits began                     
          approximately 23 weeks after the last date he worked at Kodak.              
          (Oct. 17, 1986 to Mar. 31, 1987 = 165 days or 23.57 weeks).                 




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