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4.05 Disability: A participant whose service with the
Employer ceases due to a total disability for a period
of twelve (12) months or more, prior to his normal, or
where applicable, late retirement date, shall receive
the actuarial equivalent of his Accrued Benefit. * * *
None of the indicia listed above appear in the Plan, and there is
no proof that there was any definite program to provide accident
or health coverage that would rise to the level of an accident or
health plan.
The defined benefit plan at issue in Berman v. Commissioner,
supra, is remarkably similar to the Hadd-Too Plan. In Berman,
the defined benefit plan provided for the payment of the present
value of a participant's accrued benefit if the participant
became totally and permanently disabled for a 6-month period.
Id., at 937. The summary description of the defined benefit plan
stated: "The purpose of the Plan is to reward eligible employees
for long and loyal service to the Company by providing for their
financial security at retirement. It may also provide some
additional protection in the event of death, disability, or other
termination of employment." Id. at 939. The Court of Appeals
for the Sixth Circuit affirmed this Court's holding that the plan
did not constitute a dual purpose plan; rather, the permanent
disability provision was merely one of several provisions that
could trigger a participant's claim to accrued retirement
benefits. Id. at 940. The Court of Appeals for the Sixth
Circuit noted that the statement in the summary description was
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Last modified: May 25, 2011