V.R. DeAngelis M.D.P.C. & R.T. Domingo M.D.P.C., V. R. DeAngelis M.D.P.C., Tax Matters Partner, et al. - Page 16
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an actual claim for benefits, Mr. Pagano and the STEP plan
administrator relied upon the documents submitted to them by the
claimant and did not perform an independent investigation or
verification of the claim. If a participant’s claim for benefits
as submitted did not qualify for benefits under the STEP plan,
the STEP plan allowed the participant to reform his or her claim
in order to receive his or her anticipated benefits.
F. Version 4 of the STEP Plan9
Section 1.11, 1.13, and 1.14 of the STEP plan defines the
terms “Covered Employee”, “Eligible Employee”, and “Employee”.
Section 2.1(c) states that “The Employer shall transmit to the
Plan Administrator written notice of any substantial or unusual
change in a Covered Employee’s Compensation or status (e.g., from
fulltime to parttime) as it occurs, but in any event no later
than 30 days after the change occurs”. Section 3.1 states that
“A Covered Employee’s Severance Benefit shall be determined in
accordance with the Severance Benefit formula elected in the
Adoption Agreement. In no event, however, may a Covered
Employee’s Severance Benefit exceed two times his Compensation
paid during the twelve full-month period immediately preceding
his Termination of Employment”.
9 In our findings of fact set forth under this subheading,
section references are to version 4 of the STEP plan.
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Last modified: March 27, 2008