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its inception through its termination, at which time his accrued
benefit was fully vested.3
Section 9.05 of the Plan, captioned “Nonreversion”,
prohibited the Plan funds from being used for any purpose other
than for the exclusive benefit of the participants or their
beneficiaries, except that
Upon termination of the Plan, any assets remaining in
the Trust Fund because of an erroneous actuarial
computation after the satisfaction of all fixed and
contingent liabilities under the Plan shall revert to
the Employer.
Under the heading of “Nonassignability”, section 16.03(A) stated:
None of the benefits, payments, proceeds or claims of
any Participant shall be subject to any claim of any
creditor of any Participant and, in particular, the
same shall not be subject to attachment or garnishment
or other legal process by any creditor of any
Participant, nor shall any Participant have any right
to alienate, anticipate, commute, pledge, encumber or
assign any of the benefits or payments or proceeds
which he may expect to receive under this Plan (except
as provided in this Plan for loans from the Trust).
[Emphasis added.]
On May 20, 1985, petitioner, his sons (who were also
employees of GCI), petitioner’s C.P.A. Henry Zdonek (Mr. Zdonek),
and a vice president of Actuarial Consultants, Inc., Scott
Salisbury (Mr. Salisbury), met to review the yearend 1984
3 At the Plan’s termination, the present value of
petitioner’s accrued benefit was $1,057,830, and the Plan’s total
available assets at that time were $1,498,682. The present value
of the accrued benefits of all other plan participants was at
that time $312,469.
The parties agree that, if petitioner failed to report his
distribution from the Plan, the amount should be $1,057,830
rather than $1,082,000, the amount stated in the notices of
deficiency.
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