Wells Fargo & Company (f.k.a. Norwest Corporation) and Subsidiaries - Page 22




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                  2.    Computations by the Experts                                                     
                  The parties’ experts described the ways that actuaries                                
            interpret the account limit for a reserve provided in section                               
            419A(c)(2) and made computations using variations of the aggregate                          
            and entry age normal cost methods.                                                          
                        a.    Mr. Cohen                                                                 
                  Mr. Cohen, one of petitioners’ experts, is an expert in                               
            actuarial science and a principal at PricewaterhouseCoopers LLP,                            
            advising clients on various matters involving actuarial, tax,                               
            pension, and postretirement medical issues.  He is a fellow of the                          
            Society of Actuaries, an enrolled actuary under ERISA, and a member                         
            of the American Academy of Actuaries.  From 1970-86, Mr. Cohen was                          
            employed by the Internal Revenue Service, serving in a variety of                           
            positions, including director of the Employee Plans, Technical and                          
            Actuarial Division.                                                                         
                  Mr. Cohen uses the terms “reserve” and “accrued liability”                            
            interchangeably and posits that the reserve for retirees is the                             
            present value of future benefits.  In Mr. Cohen’s opinion, the                              
            aggregate cost method is not appropriate for computing the account                          
            limit for a reserve for postretirement benefits because that method                         
            does not directly compute an accrued liability and fails to fully                           
            fund the reserve for an employee upon retirement.  In his opinion,                          
            the entry age normal cost method is the appropriate method because                          
            that method allocates the cost over the entire working life of an                           






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