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statutory interest by itself creates a separate account under
section 414(k) because a statutorily mandated rate of interest
does not represent the investment performance of a participant's
contributions. See Rev. Rul. 79-259, 1979-2 C.B. 197.11
Consequently, the regular interest credited to petitioner's
account did not create a separate account under section 414(k).12
Petitioners also contend that the earnings paid as part of
the Transfer Refund reflected the investment performance of
petitioner's contributions, and that the option to receive such
earnings in a Transfer Refund constituted a benefit from a
separate account. Although the rate of earnings utilized in
computing the amount of the Transfer Refund was determined on a
basis that considered overall gains and losses in the Retirement
System, such rate considered the investment performance only for
11 It is clear that revenue rulings are not binding
precedent. Estate of Lang v. Commissioner, 64 T.C. 404, 406-407
(1975), affd. on this issue 613 F.2d 770, 776 (9th Cir. 1980).
However, it is equally clear that we may adopt a ruling's
reasoning if it is persuasive. Neuhoff v. Commissioner, 669 F.2d
291 (5th Cir. 1982), affg. 75 T.C. 36 (1980).
12 It would appear that the Annuity Savings Fund is little
more than a bookkeeping account used to keep track of a
participant's accumulated contributions in the event that a
participant terminates employment prior to retirement and
withdraws his or her accumulated contributions. Indeed, if a
participant works until retirement (and does not receive a
Transfer Refund), then such participant's accumulated
contributions are transferred from the Annuity Savings Fund to
the Accumulation Fund in order to fund the participant's
retirement annuity, and a record of a participant's accumulated
contributions is no longer maintained because such information is
not relevant in determining the participant's retirement benefit.
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