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The Prime Plan was overseen by an administrator. Improved
Funding Techniques, Inc. (IFTI), was the Prime Plan's first
administrator. On October 24, 1990, Financial's board of
directors approved a letter of intent with IFTI under which IFTI
would assume all plan administration together with related
overhead and expenses in return for existing and projected
administration fees. Prime entered into an administrative
services agreement with IFTI in July 1991. In consideration for
providing administrative services to the Prime Plan, IFTI billed
participating employers directly in accordance with the following
fee schedule:
New plan installation: $250
Annual service costs
First 5 participants: 1050
6 to 10 participants: 1450
11 & over: 1650 + $20 per
participant
Trustee's transaction fees: 15 per transaction
Individual benefit certification:
Vested participants: 50
Non-vested participants: 35
Plan amendments: 250
Plan terminations: 650 + $75 per
participant
Revised plan valuations: 750
Special projects & consulting: 150 per hour junior
250 per hour senior
Under the Agreement with IFTI, Prime received a percentage of
profits equal to 10 percent of IFTI's fees for administration of
each plan where the annual fees (net of actuarial costs) exceeded
$1,000 per plan and 20 percent of the fees for administration of
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