Wells Fargo & Company (f.k.a. Norwest Corporation) and Subsidiaries - Page 23




                                                - 23 -                                                  
            employee, directly computes an accrued liability, and provides for                          
            full funding upon retirement.                                                               
                  Mr. Cohen opined that (1) the account limit for the reserve is                        
            equal to the reserve (accrued liability) computed under the entry                           
            age normal cost method, (2) for retirees, the reserve (accrued                              
            liability) is the present value of future benefits, and (3) for                             
            active employees, the reserve is the present value of future                                
            benefits minus the present value of future normal costs.                                    
                        b.    Mr. Scharmer                                                              
                  Mr. Scharmer is an expert in actuarial science and is a                               
            principal at Mercer.  He is a fellow of the Society of Actuaries,                           
            an enrolled actuary under ERISA, a member of the American Academy                           
            of Actuaries, and a member of the Conference of Actuaries.                                  
                  Mr. Scharmer opined that the account limit for a reserve under                        
            section 419A(c)(2) was equal to the accrued liability using the                             
            entry age normal cost method.  For 1991-94, Mr. Scharmer calculated                         
            the account limit for the reserve by applying the entry age normal                          
            cost method and by using the same facts and assumptions that Mercer                         
            relied upon when it prepared the 1991-94 valuation reports.  Mr.                            
            Scharmer computed the accrued liability (dollars in millions) on                            
            the valuation date for each year as follows:                                                











Page:  Previous  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  29  30  31  32  Next

Last modified: May 25, 2011