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We hold for petitioners on this issue.
2. 10 or More Employer Plan; Experience-Rating Agreements
We turn to the second issue; namely, whether the Prime Plan
is a "10 or more employer plan" that lacks "experience-rating
arrangements with respect to individual employers." See sec.
419A(f)(6). Petitioners assert that the Prime Plan is within
section 419A(f)(6); i.e., the Prime Plan is a single plan that
covers more than 10 employers, no one of which made more than 10
percent of the Trust's total contributions, and the plan has no
experience-rating arrangements with respect to individual
employers. Respondent asserts that the Prime Plan is outside the
scope of section 419A(f)(6); i.e., the Prime Plan is an
aggregation of plans that has experience-rating arrangements with
respect to all participating employers.
We agree with respondent that the Prime Plan does not meet
the requirements of section 419A(f)(6). The Prime Plan is an
aggregation of separate welfare benefit plans, each of which has
an experience-rating arrangement with the contributing employer.
We start our analysis with a discussion of the history of subpart
D.13 Subpart D, which consists of sections 419 and 419A, was
enacted by the Congress as part of Deficit Reduction Act of 1984,
Pub. L. 98-369, secs. 511(a) and 512(a), 98 Stat. 484, 854-862.
13 In National Presto Indus., Inc. v. Commissioner, 104 T.C.
559 (1995), and General Signal Corp. v. Commissioner, 103 T.C.
216 (1994), supplemented by 104 T.C. 248 (1995), this Court
addressed other issues under subpart D.
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