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Neither Prime nor its actuaries ever implemented the Trust
provisions requiring an annual calculation of experience gains
and losses. Prime changed its method of calculating experience
gains and losses effective June 30, 1990, because the unexpected
number of accounts which incurred experience gains created a
significant concern among the plan participants and their
advisers. Prime believed that this could potentially create non-
recoverable Suspense Account assets and alarm plan participants.
Prime wanted to reduce the amount of experience gain subject to
forfeiture and find a way to allow Suspense Account distribution
on withdrawal.
6. Employer Withdrawal From the Prime Plan
Employers could withdraw from the Prime Plan at any time by
submitting written notification to Prime, accompanied by
documentation showing that the necessary ownership interest of
the employer had approved the withdrawal. The necessary
ownership interest was the percentage listed by that employer in
its Adoption Agreement. If an employer failed to pay Prime's
annual administrative fee, Prime had the sole discretion to force
that employer to withdraw from the Prime Plan.
Upon an employer's withdrawal, assets were distributed to
all living Covered Employees who were employed during the period
that began 18 months before Prime's receipt of the notice.
Excess assets remaining in the Trust allocable to the Employee
Group after payment of all benefits and the employer's share of
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