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participated, each participating employer made a
one-time, nonrevertible contribution to a single trust,
equal to the amount necessary to fund the dismissal
wage and death benefits of its qualifying employees.
The trust segregated each contribution into a separate
account for payment of benefits to only the
contributing employer's qualifying employees. If an
employer's account did not have enough assets to pay a
promised benefit, the trustee could supplement the
account's assets with assets from a "suspense account"
that was funded primarily by actuarial gains and
amounts forfeited from the employers' accounts in
certain enumerated situations. Each employer selected
options under the Prime Plan, including participation
and vesting requirements. Except through the suspense
account, an employee had no right to receive benefits
from other than his or her employer's account.
Held: The Prime Plan is a "welfare benefit plan"
within the meaning of sec. 419, I.R.C.
Held, further: The Prime Plan is not within the
scope of sec. 419A(f)(6), I.R.C., because it is an
aggregation of separate plans each having an
experience-rating arrangement with the related
employer.
Held, further: None of the corporate Ps are
liable for the accuracy-related penalties determined by
R.
Charles A. Pulaski, Jr., Janet E. Barton, and Tim A. Tarter,
for petitioners.
Katherine H. Ankeny, Anne W. Durning, and Randall P.
Andreozzi, for respondent.
LARO, Judge: The docketed cases, consolidated for purposes
of trial, briefing, and opinion, consist of four groups of test
cases selected by the parties to resolve their disputes
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