- 4 -
(a) Amount. The monthly amount of the Disability
Pension shall be the amount of Regular Pension to which
the Participant would be entitled if he had attained
his Normal Retirement Age at the time his Disability
Pensions starts, based on -
(i) the number of full and fractional years of
Pension Credit accrued by him on the last day for which
the Employer was obligated to make contributions to the
Fund on behalf of such Participant, and
(ii) the Benefit Level in effect on the last day
for which the Employer was obligated to make
contributions to the Fund on behalf of such
Participant.[4]
A document entitled PIUMPF - CALCULATIONS, dated May 16,
1996, provided that Mr. Thomas was almost 52 years old when he
retired, and that he worked for Stone Container and its
predecessors for 25.75 years. The document shows an “Age
Reduction %” of “60.0% on 52 Years 0 Months”. According to the
document, Mr. Thomas’s “Benefit Level” was “$483 under Plan Type
‘A’”. The document estimates Mr. Thomas’s disability pension
benefits to total $498 per month.
4The PIUMPF Summary Plan Description, Section X, further
provides under the heading FINANCIAL INFORMATION that “The
contributions to the Plan are made by the employers in accordance
with their collective bargaining agreements with the PACE
International Union, AFL-CIO, and other unions, and are reflected
in the Fund’s Standard Form of Participation Agreements.” The
record does not reflect that Mr. Thomas paid premiums for the
disability pension plan or that premiums paid by Stone Container
were includable in Mr. Thomas’s gross income. Accordingly,
Mr. Thomas’s disability pension benefits are not excludable from
gross income pursuant to sec. 72(b) or 104(a)(3). See sec.
72(f); sec. 1.72-15(c)(2), Income Tax Regs.
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Last modified: November 10, 2007