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Tenured Professors' Retirement Payments Taxable

Law360 (November 5, 2007, 12:00 AM EST) -- Overturning an earlier ruling by a district court and choosing between two conflicting precedents, an appellate court ruled Friday that early retirement payments made by the University of Pittsburgh to tenured professors could be taxed by the U.S. government under the Federal Insurance Contribution Act.

The university had argued that its early retirement payments were not wages, but a buy-out payment for professors' tenure rights. Judge Julio Fuentes of the U.S. Court of Appeals for the Third Circuit disagreed, saying that tenure was itself a form...
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