- 15 -
Interest: 7% per annum, compounded annually
Salary scale: Average annual salary increases of 7%
Mortality:
Pre-severance forfeiture age: None
Post-severance forfeiture age: Assumed rates of
mortality are based on
the Society of Actuaries
1951 Group Annuity
Mortality Table
Terminations: Each employee was assumed to terminate before
reaching the forfeiture age
The Trust used each employer's contributions to purchase
insurance products to fund the DWB's and death benefits promised
under the Prime Plan. The employer designated in its Adoption
Agreement the insurance company from which the insurance products
for its employees were to be purchased, as well as the type and
amount of these products. The employer could designate in its
Adoption Agreement vesting periods and percentages, which
determined the amount of DWB's that would be paid to its
employees. The employer could designate in its Adoption
Agreement its employees' "Year of Participation" and "Year of
Service", as those terms were defined in the Trust Agreement.
B. The August 31, 1988, Trust Agreement
1. Overview
Prime and Northern Trust entered into the August 31, 1988,
Trust Agreement, "establish[ing] a Multiple Employer Welfare
Benefit Fund and Trust for the exclusive benefit of the
participating Employers, their Employees, and in the case of life
benefits, their Beneficiaries". Under this agreement, each
Page: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 NextLast modified: May 25, 2011