William Reynold Luhr - Page 6




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               paid must itself provide specificity as to the                         
               permanent loss or injury suffered and the corresponding                
               amount of payments to be provided. * * * exclusion is                  
               permitted only under plans which vary benefits to                      
               reflect the particular loss of bodily function. * * *                  
          Accord Beisler v. Commissioner, 814 F.2d 1304, 1307 (9th Cir.               
          1987), affg. T.C. Memo. 1985-25; Hines v. Commissioner, 72 T.C.             
          715, 720 (1979).  Petitioner relies on a letter from the pension            
          trust manager stating that petitioner’s receipt of the monthly              
          pension is solely based on the amount of petitioner’s Social                
          Security disability benefits.  The letter also informs petitioner           
          that upon attaining age 65, “this Disability Pension was                    
          converted to an Age Pension.”  It is well settled that we “are              
          fully justified in examining such contracts or relationships to             
          determine whether they are truthfully described by the labels               
          which the parties have attached to them.”  Graybar Elec. Co. v.             
          Commissioner, 29 T.C. 818 (1958), affd. per curiam 267 F.2d 403             
          (2d Cir. 1959).  The labeling of the pension trust as                       
          “disability” without evidence confirming that the requirements of           
          section 105(c) have been met is not binding on us.  At trial,               
          petitioner did not produce the written pension trust agreement              
          and has been unable to establish that the pension trust payments            
          he received from the union comport with the requirements of                 
          section 105(c).  Indeed, petitioner concedes that the union                 
          computed his pension trust benefits based on the number of hours            
          performed and years of credited service rather than with regard             
          to any injury as required by section 105(c)(2).                             






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