Frank and Barbara Biehl - Page 13

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          arrangement[7] with his employer.”  Sec. 62(a)(2)(A).  This                 
          language incorporates and illustrates a general proposition that            
          applies across the board to section 62(a) and also highlights               
          theadditional specific restrictions to which employees are                  

               7Sec. 62(a)(2)(A) and its statutory predecessors do not                
          contain and have never contained a definition of the term                   
          “arrangement”.  However, the regulations under sec. 62(c) treat             
          the terms “arrangement” and “plan” as synonymous.  Sec. 1.62-               
          2(k), Income Tax Regs., provides that if “a payor’s reimbursement           
          or other expense allowance arrangement evidences a pattern of               
          abuse of the rules of section 62(c) and this section, all                   
          payments made under the arrangement will be treated as made under           
          a nonaccountable plan.”                                                     
               Dictionary definitions of the terms “arrangement” and “plan”           
          are helpful, although not dispositive, in indicating that the               
          terms encompass a continuing relationship, rather than a one-shot           
          payment of the type at issue in the case at hand.  The primary              
          definition of “arrangement” in Webster’s New Universal Unabridged           
          Dictionary 103 (2d ed. 1979) as “the act of putting in proper               
          order; also, the state of being put in order” implies two or more           
          elements.  The use of the term in bankruptcy arrangements has               
          multiple elements encompassing multiple creditors of the debtor             
          whose affairs are arranged and a variety of terms and provisions            
          regarding the payment or provisions for payment of his debts.               
          Similarly the dictionary definitions of “plan”, id. at 1372, as             
          “a scheme for making, doing, or arranging something; a project; a           
          program; a schedule”, encompass or imply multiple elements for              
          accomplishing something over a period of time.                              
               The law of Federal preemption under the Employee Retirement            
          Income Security Act of 1974 (ERISA), Pub. L. 93-406, 88 Stat.               
          829, is in accord.  See Fort Halifax Packing Co. v. Coyne, 482              
          U.S. 1 (1987) (Maine statute requiring employers to provide one-            
          time severance payment to employees terminated in event of plant            
          closing not preempted by ERISA, which was intended to afford                
          employers uniform administrative procedures governed by Federal             
          regulations; ERISA concern arises only with respect to benefits             
          whose provision requires ongoing administrative program to meet             
          employer’s obligations; thus Congress intended to preempt State             
          laws relating to plans, rather than those simply relating to                

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