- 74 -
multiple employer trust allows a participant to collect benefits
from 100 percent of the trust's assets, and petitioners' expert,
E. Paul Barnhart, F.S.A., M.A.A.A., did not disagree.14 Mr.
Barnhart testified that the attributes described by Mr. DeWeese
were found typically in a multiple employer trust, and that,
except for the Trust, he (Mr. Barnhart) had never seen a multiple
employer trust that did not possess those attributes. Mr.
DeWeese and Mr. Barnhart both testified that the Prime Plan was
dissimilar to a traditional multiple employer plan, mainly
because of its lack of these attributes.
We disagree with petitioners' reading of the legislative
history to indicate that the Congress enacted section 419A(f)(6)
to encourage plans such as the Prime Plan. We read this history
to point to a legislative intent that is contrary to the intent
espoused by petitioners. The House committee articulated its
concern about the tax-shelter potential of welfare benefit plans
and about the ability of small business owners to achieve the
effect of a qualified pension plan, but with fewer limitations.
H. Rept. 98-432 (Part 2), supra at 1275. The committee also
noted that "substantial advance funding of welfare benefits will
14 We were not impressed with the testimony of petitioners'
other expert, Kenneth D. Klingler, F.S.A. We find his testimony
at trial unpersuasive and unhelpful, and we do not rely on it.
Sammons v. Commissioner, 838 F.2d 330, 334 (9th Cir. 1988), affg.
in part and revg. in part on another issue T.C. Memo. 1986-318;
Christ's Estate v. Commissioner, 480 F.2d 171, 174 (9th Cir.
1973), affg. 54 T.C. 493 (1970); Trans City Life Ins. Co. v.
Commissioner, 106 T.C. 274, 301-302 (1996).
Page: Previous 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 NextLast modified: May 25, 2011