James A. Picard - Page 10

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          not qualified for service retirement at the time they were                  
          retired for disability were accorded a fixed percentage (66-2/3             
          percent) of their final compensation until the date upon which              
          they would have qualified for service retirement if they had                
          continued work uninterrupted; and (iii) on that date, such                  
          members' retirement allowance was recomputed in conformance with            
          the terms of the service retirement provisions of the Charter,              
          treating time spent on disability as equivalent to time spent in            
          active service.                                                             
               The taxpayer in Wiedmaier was a Detroit firefighter who was            
          retired for an employment-connected disability on June 6, 1977,             
          approximately 10 months prior to qualifying for service                     
          retirement.  Under the Detroit Charter, the taxpayer therefore              
          initially received payments equal to 66-2/3 percent of his final            
          compensation until March 30, 1978, the date on which he reached             
          25 years of service, treating both time actually working and time           
          spent on disability as equivalent service for this purpose, as              
          provided in the Charter.  On March 30, 1978, and thereafter,                
          payments to the taxpayer were computed under the service                    
          retirement provisions of the Charter, likewise treating time                
          working and time on disability as equivalent service, with the              
          result that the payments were reduced from 66-2/3 percent of                
          final compensation to 50 percent of average compensation during             
          the 5 years preceding retirement.  The Court concluded that the             

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