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that it was permissible for a pension fund to provide ad hoc
benefit increases to pensioners and beneficiaries it was agreed
that the National Pension Fund should provide the amount
necessary to reach the desired formula.”) The ad hoc payment
equaled the amount that, in combination with the benefit payable
from the COLA Fund, equaled the 3-percent COLA.
The COLA Fund’s assets were again insufficient to pay the
3-percent COLA for 1986, 1987, and 1988. In each of these years,
petitioner approved the NPF Fund’s payment of an ad hoc amount
that, in combination with the benefit payable under the COLA
Fund, equaled the 3-percent COLA. The percentages of those ad
hoc payments for 1985 through 1988 were 1.7, 1.8, 1.5, and 2.4,
respectively.
On July 11, 1988, respondent prescribed a new set of
regulations that included section 1.411(d)-4, Q&A-1(c), Income
Tax Regs. That section mandates that, if an employer establishes
a pattern of repeated plan amendments providing for similar
benefits in similar situations for substantially consecutive,
limited periods of time, those benefits will be treated as
provided under the terms of the plan. That section further
mandates that patterns of repeated plan amendments adopted and
effective before July 11, 1988, are disregarded in determining
whether the amendments constitute a pattern that is deemed part
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