Read Weil v. Retirment Plan Administrative Committee, 55 AFTR2d 85-404; 1985-1 USTC ¶9164 and address the following questions:
a. What court decided the case?
b. What are the material facts? What facts are not material?
c. What is the Code section at issue?
d. What was the court's conclusion? List the sources the courts used in arriving at this conclusion.
e. Using the Weil case, the Internal Revenue Code, and the Treasury regulations, address the following research question.
Last year, Company X underwent a reorganization that involved moving its corporate headquarters from New York to California. Last year the company had 375 employees. At the present time (December), the company employs only 280 people. Of the 95 reduced positions, 42 were duplicate job positions and, therefore, were eliminated as part of the reorganization. The reduction also included 27 people who retired or voluntarily resigned. The remaining 26 positions were employees who were offered positions in California but chose not to relocate. Does this reduction of employees constitute a partial termination of their pension plan?