Richard A. McDowell - Page 3

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          providing the same benefits as the City ordinance.  In accordance           
          with the provisions of the collective bargaining agreement,                 
          petitioner received annual disability pension payments equal to             
          66 2/3 percent of his salary at the time of his retirement.                 
               The disability pension ordinance of the City has been                  
          consistently applied to allow only those firefighters injured in            
          the line of duty to receive a disability pension.                           
               During the year 1992, petitioner received disability pension           
          payments in the total amount of $20,691, none of which was                  
          reported as gross income on his Federal income tax return for the           
          year.                                                                       
                                       OPINION                                        
               Respondent contends that petitioner may not exclude from               
          gross income amounts received under the disability pension plan             
          of the City because the City ordinance implementing the plan is             
          neither a worker's compensation act nor in the nature of a                  
          worker's compensation act as required by statute.  It does not              
          meet statutory requirements, argues respondent, because the                 
          wording of the ordinance does not specifically limit benefits to            
          those who are disabled due to work-related injury or sickness.              
          Respondent also argues that if petitioner received his disability           
          payments pursuant to the agreement between the City and the                 
          Union, they are not excludable because the agreement is not a               
          "statute" in the nature of a worker's compensation act.                     






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