- 2 - After a concession by petitioner, the sole issue for decision is whether petitioner is entitled to exclude from gross income amounts received as disability payments during 1993. Background Some of the facts have been stipulated, and they are so found. The stipulation of facts and the attached exhibits are incorporated herein by this reference. At the time he filed his petition, petitioner resided in Costa Mesa, California. Petitioner worked for the City of Santa Ana, California (the City), as a grounds maintenance worker, earning approximately $2,250 per month. The City provided petitioner with long-term disability insurance through Standard Insurance Co. of Portland, Oregon (Standard). Standard offers two disability insurance options to the City’s employees. Under plan A, a disabled employee is eligible to receive one-half of his base monthly salary until his disability ends or until he reaches age 65.2 The City pays the entire premium for this coverage, but an employee is not eligible for the benefits until he is unable to work for 130 days because of the disability. Under plan B, a disabled employee receives 2 Section 1 of Standard’s group policy states: The amount of Monthly Income shall be 50% of the first $5,000 of the Member’s basic monthly earnings, reduced by any Deductible Benefits.Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011