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from the Trust, as was the case with all taxes levied or assessed
against the Trust. The trustee and insurer withheld any taxes
that were required to be withheld from any payment to a Covered
Employee and/or beneficiary.
C. The December 31, 1988, Trust Agreement
Prime amended the Trust Agreement on or about December 31,
1988. In relevant part, the following amendments were made.
First, Prime deleted the requirement that forfeited DWB's
and forfeited proceeds from the sale or surrender of life
insurance policies be segregated into the Suspense Account to be
used to provide benefits to the corresponding employer's Covered
Employees. Prime replaced this requirement with a provision
stating that these forfeitures would be experience gains subject
to the existing provisions, except as otherwise modified by the
amendments. One of these amendments required experience gains to
be allocated annually to the Suspense Account and allowed Prime
to direct the trustee to invest these amounts in tax exempt
securities or leave the amounts in each applicable Employee Group
subject to a lien.
Second, Prime was given the power to use the Suspense
Account assets in any manner consistent with a purpose or
objective of the Prime Plan, including supplementing the payment
of DWB's to an Employee Group with insufficient assets to pay
projected benefits due to experience losses suffered by that
Employee Group. Another new provision provided that neither
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