Wells Fargo & Company (f.k.a. Norwest Corporation) and Subsidiaries - Page 13




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          present value of the future working life of an employee is                  
          comparable to the present value of an annuity (computed with the            
          actuarial interest rate used by the plan) that pays $1 each year            
          until the employee is expected to retire.                                   
               3.   Mercer’s Actuarial Assumptions for the 1991-94                    
                    Contributions to the Postretirement Medical Trust                 
               In order to compute the present value of future benefits in            
          the 1991-94 valuation reports, Mercer made certain actuarial                
          assumptions, including investment rates, the number of employees            
          who would “retire, die, terminate their services or become                  
          disabled, their ages at termination, and their expected benefits.”          
          Mercer requested Norwest to provide an estimate of Norwest’s                
          effective tax rates for years 1991-94.  Norwest advised Mercer that         
          those tax rates would be approximately 39 percent in 1991-92 and 40         
          percent in 1993-94.                                                         
               The pretax and after-tax investment rates Mercer used in the           
          1991-94 valuation reports were as follows:                                  
                                   1991    1992    1993    1994                       
               Pretax investment rate     9.00%   8.00%   6.00%   6.00%               
               After-tax investment rate  5.50    4.90    3.60    3.60                
               The following chart illustrates the various factors disclosed          
          in the 1991-94 valuation reports (minor computational discrepancies         
          are unexplained):                                                           










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