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contribution funded the full accrual of DWB's for Systems' three
employees ($264,000), as well as their death benefits ($36,000).
When Mr. Johnson made that contribution, he believed the money
could not be lost to an employee of another Employee Group.
Systems' three employees became Systems' Covered Employees in
1990.
On March 12, 1991, Mr. Johnson, on behalf of Systems,
amended the 1990 Adoption Agreement effective as of December 31,
1990, to change the DWB accrual percentage to 176 percent and the
years of service multiple to one. No change was made to the
vesting schedule.
In all, Systems submitted the following Adoption Agreements
relating to its participation in the Prime Plan:
Date Effective 12/20/90 12/20/90 12/20/90 12/20/90
Dismissal wage benefit percentage 176 176 176 200
Years of service 1 1 1 5
Vesting schedule Immediate Immediate Immediate 4/40
Normal retirement age not listed 65 65 Not listed 65
Death benefit multiple 16.275 16.275 16.275 15.695
Date executed Not Not Not 12/20/90
executed executed dated
On December 2, 1991, IFTI sent Systems copies of substitute pages
1 and 5 for its Adoption Agreement. These pages changed the
employer yearend to September 30, the Normal Retirement Date to
65, and the death benefit multiple to 16.275.
D. Administration of Systems' Account in the Prime Plan
The 1989 annual report on Systems' account in the Prime Plan
pertained only to Systems' Employee Group, and it did not provide
any information regarding the Trust as a whole.
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