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Several factors have been held relevant in determining
whether a deferred compensation plan was intended to provide
accident or health benefits, including: (1) A statement in a
written plan that its purpose is to qualify as an accident or
health plan within the meaning of the Internal Revenue Code and
that the benefits payable under it are eligible for income tax
exclusion; (2) specification in a plan that the benefits payable
are those amounts incurred for medical care in the event of
personal injury or sickness; (3) terms in a plan that limit the
benefits payable to legitimate medical expenses; and (4) a
provision allowing an employee to be compensated for specific
injuries or illness, such as the loss of a limb. Berman v.
Commissioner, supra at 939; Caplin v. United States, supra.
The Hadd-Too Amended and Restated Plan contains only two
references to the provision of benefits in the event of
disability. The summary description of the Plan states:
The basic purpose of the Plan continues to be to
give retirement income to the employees to supplement
the benefits they will receive under the Social
Security laws. The plan gives an additional measure of
security to participants and their beneficiaries by
providing benefits which help to insure against loss
caused by disability. In addition, the Plan provides
for payments to employees, under certain circumstances,
if they die or terminate their employment prior to
their retirement. * * *
The second reference appears in the Plan itself:
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Last modified: May 25, 2011