- 3 -
unrelated third party. Petitioners were not fiduciaries of the
Plan and exercised no authority, control, responsibility, or
discretion over its administration or operation.
Petitioners consistently relied on the Plan trustee to
handle all required Plan filings, take all steps necessary to
maintain the Plan’s qualified status, and provide petitioners
with pertinent Plan information. Prior to 1985, petitioners
owned no interest in Ace; all issued and outstanding shares were
owned by third parties. In June 1985, petitioners acquired 100
shares of Ace.
The Plan was amended in 1980, changing its eligibility
requirements to age 21 and 6 months of service. The Plan was
again amended in 1986, changing the vesting to 4-year “cliff”
vesting. Both amendments were approved by the IRS; no other
amendments were made to the Plan.
Effective May 31, 1984, the Plan was frozen, and no further
employer contributions were made. No employee contributions were
made to the Plan at any time. The Plan was terminated effective
June 1, 1987. Ace was adversely affected by the economic
hardship faced by the Texas oil industry in the 1980's, and it
was for this reason that Ace discontinued making contributions to
the Plan.
On behalf of the Plan, the trustee filed a final Form 5500-
C, Return/Report of Employee Benefit Plan (with fewer than 100
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011