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(i) all trusts which are part of a plan shall
be treated as a single trust, all pension
plans maintained by the employer shall be
treated as a single plan * * * . [Emphasis
added.]
This Court has previously held that section 402(e)(4)(C)
requires that we treat the Retirement System and the Pension
System as a single pension plan. Dorsey v. Commissioner, T.C.
Memo. 1995-97; Brown v. Commissioner, T.C. Memo. 1995-93; Hoppe
v. Commissioner, T.C. Memo. 1994-635; Hamilton v. Commissioner,
T.C. Memo. 1994-633; see Wheeler v. Commissioner, T.C. Memo.
1993-561; see also Sites v. United States, 75 AFTR 2d 95-2503,
95-1 USTC par. 50,280 (D. Md. 1995). Thus, as a consequence of
aggregating the Retirement System and the Pension System, we have
held that a taxpayer's transfer from the Retirement System to the
Pension System allows the taxpayer to receive the balance to his
or her credit in two parts, an initial single payment (the
Transfer Refund) and a reduced monthly annuity (based on all of
the taxpayer's years of creditable service and on the taxpayer's
salary during those years). Thus, we have consistently held that
a Transfer Refund does not constitute a taxpayer's entire
"balance to the credit" in the Retirement and Pension Systems and
is therefore not a lump sum distribution within the meaning of
section 402(e)(4)(A).
In view of the foregoing, we hold that the Transfer Refund
did not constitute a lump sum distribution within the meaning of
section 402(e)(4)(A) because petitioner did not receive the
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