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On March 6, 1991, IFTI forwarded the 1990 annual report for
Systems' account to Mr. Johnson. The report included an
actuarial valuation signed by Deloitte & Touche and provided the
following calculations of vested severance benefits for Systems'
Covered Employees:
1989 Accrual Years of Vesting Vested
Compensation percent Service percent Severance
Mr. Johnson$140,000 176 1 100 $246,400
Ms. Johnson9,000 176 1 100 15,840
Mr. Carr 1,000 176 1 100 1,760
In the 1990 annual report, the Prime Plan's actuary used a DWB of
176 percent, 1 year of service, 100 percent vesting, and a 16.275
death benefit multiple. These numbers were different from those
set forth in the Adoption Agreements. Adoption Agreements with
the percentages and multiples used in the 1990 annual report were
prepared, but never executed by Systems. IFTI contacted Systems
on numerous occasions in 1991 and 1992, stating that Systems
needed to provide the executed Adoption Agreements. Mr. Carr
executed, but failed to date, an Adoption Agreement with the
correct percentages and multiples.
The annual reports for Systems' account in the Prime Plan
included the following information:
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