- 31 -
ratio of an employer's total contributions made to the Prime Plan
as of December 31 over the total of all contributions which the
employer should have made to fully fund its Employee Group's
benefits. Prime also amended the measurable event formula to
read as follows:
fair market actual employer
value of actual employer contributions contributions
suspense x total employer contributions x theoretical
account on to the Trust employer
valuation date contributions
Another new provision gave Prime the sole discretion not to use
the measurable event formula wherever Prime concluded that the
formula would give a Covered Employee a larger benefit upon an
employer's withdrawal than he or she would have received as a
DWB.
Second, Prime replaced the phrase "terminated his employment
with the Employer on account of Retirement" with the phrase
"remained in the employ of the Employee Group beyond his
Forfeiture Age".
Third, Prime added a provision allowing the use of Suspense
Account assets to pay all fees and costs incurred in litigating
with the Commissioner issues related to the Prime Plan.
Permissible fees and costs included those of attorneys,
accountants, actuaries, and expert witnesses. Before this
amendment, Prime had spent $215,000 from the Suspense Account to
pay for legal services rendered mainly by Mr. Weiss and Mr. Brody
in defense of the Commissioner's challenge of the deductibility
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