The Board of Trustees of the Sheet Metal Workers' National Pension Fund - Page 10




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          office on the answers to the following questions:  (1) Whether              
          the benefit provided under article 8 is an accrued benefit under            
          section 411(a)(7)(A)(i) for pre-1991 retirees; and (2) whether              
          the amendment that discontinued NPF COLAs for pre-1991 retirees             
          reduced those participants’ accrued benefits in violation of                
          section 411(d)(6)(A).                                                       
               By letter dated September 8, 1999, the District Office sent            
          a copy of the TAM to the Plan’s counsel.  The TAM concludes that            
          the amendment to article 8 violates section 411(d)(6).  The                 
          letter asked the Plan to submit a corrective amendment.  By                 
          letter dated October 4, 1999, the Plan’s counsel notified the               
          District Office that petitioner did not intend to make any                  
          corrective amendment to the Plan.                                           
               On March 6, 2000, respondent issued to the Plan a final                
          adverse determination letter that stated that the Plan failed to            
          qualify under section 401(a) for 1995 and thereafter.  It also              
          stated that the trust underlying the Plan was not exempt from               
          Federal income taxation under section 501(a) for the related                
          years.  The adverse determination was generally based upon the              
          reasons stated in the TAM.                                                  
                                     Discussion                                       
               We must decide whether the NPF COLA is an accrued benefit of           
          the pre-1991 retirees, the elimination of which violated the                
          anticutback rule of section 411(d)(6).  Petitioner maintains that           






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