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participating employer had its own "Employee Group" that
consisted of its employees (the Covered Employees) who met the
minimum age and service requirements set forth by the employer in
the Adoption Agreement.
The Trust Agreement designated each participating employer
as a "Plan Administrator". Generally, each Plan Administrator
exercised all discretionary and other authority to control and
manage the operation and administration of the Prime Plan. Under
the Trust Agreement, each Plan Administrator delegated to Prime
most of its duties and responsibilities with respect to the Prime
Plan, including: (1) Applying rules determining eligibility,
(2) calculating service and compensation credits, (3) preparing
employee communication material, benefit reports, and reports
required by governmental agencies, (4) calculating benefits,
(5) advising employees on their rights and options, (6) applying
contributions, (7) processing claims, (8) recommending decisions
on the Trust's administration and the maintenance of accounts,
and (9) maintaining an account for each Covered Employee.9 Prime
received a fee for performing these services.
9 The Trust Agreement generally required the maintenance of
separate accounts for each Covered Employee to assure each
participating employer that any contributions that it made to the
Prime Plan were segregated and considered assets of its Employee
Group.
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