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hoc payments from the NPF Fund established a pattern of repeated
plan amendments providing for similar benefits in similar
situations for substantially consecutive, limited periods of
time. Hence, respondent argues, the ad hoc payments are treated
under section 1.411(d)-4, Q&A-1(c)(1), Income Tax Regs., as
permanent, nonforfeitable features of the Plan, without regard to
the 1-year period of time actually provided in the amendments.
Respondent published Rev. Rul. 92-66, 1992-2 C.B. 93,
describing operation of rules regarding a pattern of repeated
plan amendments. That ruling provides:
Whether the recurrence of plan amendments
constitutes a pattern of amendments within the meaning
of section 1.411(d)-4 of the regulations is determined
on the basis of the facts and circumstances. Although
no one particular fact is determinative, relevant
factors include: (i) whether the amendments are made on
account of a specific business event or condition; (ii)
the degree to which the amendment relates to the event
or condition; and (iii) whether the event or condition
is temporary or discrete or whether it is a permanent
aspect of the employer’s business. [Id.]
The ruling addressed an employer’s decision to offer an
early retirement “window” to its employees during each of 3
consecutive years of adverse business conditions. In the fourth
10(...continued)
paragraph (c)(1) of this Q&A-1 are effective
as of July 11, 1988. Thus, patterns or [sic]
repeated plan amendments adopted and
effective before July 11, 1988 will be
disregarded in determining whether such
amendments have created an ongoing optional
form of benefit under the plan.
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