Wells Fargo & Company (f.k.a. Norwest Corporation) and Subsidiaries - Page 43




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            404(a)(1)(A)(ii) limits the deduction for a contribution to a                               
            pension plan to “the amount necessary to provide with respect to                            
            all of the employees under the trust the remaining unfunded cost of                         
            their past and current service credits distributed as a level                               
            amount * * * over the remaining future service of each such                                 
            employee”.  The phrases “over the remaining future service of each                          
            such employee” (the section 404(a)(1)(A)(ii) language) and “over                            
            the working lives of the covered employees” (the section 419A(c)(2)                         
            language) are not identical.  We give heed to the fact that                                 
            Congress could have used identical language in both the pension and                         
            VEBA provisions but chose not to do so.                                                     
                  Moreover, Congress in section 419A(e)(1) specifically made the                        
            pension nondiscrimination rules of section 505(b) applicable to the                         
            section 419A(c)(2) reserve.  This is an indication that Congress                            
            did not intend to automatically apply pension provisions to section                         
            419A.  Additionally, in section 419(c)(3), Congress provided for                            
            the amortization of the adjusted basis of a child care facility                             
            over 60 months.  This is a further indication that Congress did not                         
            intend to require amortization of the postretirement benefit of a                           
            retired employee.                                                                           
                  When Congress has intended to require costs to be spread over                         
            the remaining working lives of active employees, it has done so                             
            clearly.  For example, the funding period for purposes of                                   

                  19(...continued)                                                                      
            amount provided in sec. 404(a)(1)(A)(iii).                                                  




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Last modified: May 25, 2011