Alfred E. Gallade - Page 6

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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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