Alfred E. Gallade - Page 15

                                       - 15 -                                         
          employers were liable.  ERISA established the PBGC to operate a             
          mandatory insurance program that provides for benefits if a                 
          pension plan is terminated without adequate funding.  In re                 
          Pension Plan For Employees of Broadway Maintenance, 707 F.2d 647,           
          648 (2d Cir. 1983).                                                         
              Concerning the Plan, GCI filed a Notice of Intent to                   
          Terminate with the PBGC, stating that it planned to effect the              
          “waiver”.  The PBGC then issued a Notice of Sufficiency after it            
          determined that the Plan’s assets were sufficient to discharge              
          all obligations under the Plan.  See sec. 2617.12(c), PBGC Regs.            
          A Notice of Sufficiency is not a determination of the Federal               
          income tax consequences of termination; its purpose is to address           
          plans’ financial sufficiency.  Therefore, petitioner’s reliance             
          on the Notice of Sufficiency is misplaced.                                  
               Finally, petitioner contends that the Plan’s excess funds              
          could be waived by petitioner.  Petitioner argues that, pursuant            
          to section 1.401-2(b)(2), Income Tax Regs., excess plan funds may           
          revert back to the employer if due to actuarial error.  In this             
          regard, petitioner argues that there was “actuarial error”                  
          because his waived funds were no longer needed to meet the                  
          obligations to the other Plan participants.                                 
               Section 1.401-2(b)(1), Income Tax Regs., provides, in                  
          relevant part:                                                              
               A balance due to an “erroneous actuarial computation”                  
               is the surplus arising because actual requirements                     
               differ from the expected requirements even though the                  
               latter were based upon previous actuarial valuations of                

Page:  Previous  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  Next

Last modified: May 25, 2011