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employees received their benefits. Mr. Salisbury forwarded a
copy of the memorandum to petitioner and Mr. Zdonek.
On August 5, 1985, Mr. Salisbury sent a letter to Mr.
Zdonek, a copy of which petitioner received. The letter
confirmed that GCI desired to: (1) Terminate the Plan; (2) pay
all participants their then-accrued benefits, except for
petitioner whose benefit would “revert” back to GCI; (3) create a
new plan, to which the employees of GCI would transfer their Plan
benefits; and (4) have a waiver of benefits prepared for
petitioner. Mr. Salisbury commented on the Plan benefits with
respect to Mrs. Gallade, stating that he believed:
temporary IRS regulations under the Retirement Equity
Act of 1984, published in the Federal Register on
July 19, 1985, indicate that, “...any plan that has a
termination date prior to September 17, 1985 and
distributes all remaining assets as soon as
administratively feasible after the termination date,
is not subject to the new survivor annuity requirements
[of sections 401(a)(11) and 417]." [See sec. 1.401(a)-
11T, Q&A-10, Temporary Income Tax Regs., 50 Fed. Reg.
29373 (July 19, 1985).]
On September 4, 1985, GCI adopted a resolution terminating
the Plan. The resolution stated that
[petitioner] hereby waives all his rights and benefits
under * * * [the Plan] and that all such rights and
benefits will revert to the Employer-Corporation upon
termination of [the] plan.
The termination, which was signed by petitioner, was effective
September 16, 1985.
In anticipation of the Plan’s termination, on or about
September 6, 1985, GCI filed an Internal Revenue Service Form
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