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The Pension Plan
Petitioner had carried on his dental practice as an employee
of Kelter Professional Corp. (the corporation). Petitioner was
the sole officer, director, and shareholder of the corporation.
On December 31, 1984, the corporation adopted the “Kelter
Professional Corporation Restated Pension Plan No. Two” (the
Plan), a defined benefit plan. Section 9.3 of the Plan is
entitled “Disability”, and provides:
A participant who becomes totally and permanently
disabled prior to his Normal Retirement Date shall be
vested one hundred percent (100%) in his Accrued
Benefit. The determination of the Committee based upon
competent medical advice which shall include the
opinion of a licensed physician shall be final as to
whether any Participant is totally and permanently
disabled within the meaning of this paragraph. * * *
Benefits payable under this Section 9.3 shall be deemed
made from a disability plan maintained by the Employer
pursuant to Sections 105(c) and 105(e) of the Code.
The “Committee” specified in section 9.3 of the Plan (the
Committee) consisted only of petitioner and his wife. As defined
by the Committee, the term “totally and permanently disabled”
meant that the participant would be unable to do any job. The
term “Accrued Benefit” is defined in the Plan to mean, “at any
time the monthly retirement benefit to which a Participant is
entitled * * * [subject to certain limitations] commencing at his
Normal Retirement Date based upon his number of Years of
Participation to the date of determination.”
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Last modified: May 25, 2011