On October 20, 2011, the Internal Revenue Service announced the 2012 Cost-of-Living Adjustments (COLA)* to the retirement plan limits.
Below is a chart outlining the new COLA limits that become effective January 1, 2012, along with the two prior tax years.
If you have any questions or wish to discuss the application of these limits to your retirement plan, please contact your ERISA Consultant at (800) 234-9584.
*IR-2011-103, Oct. 20, 2011.
Q3 2011 Economic Roundtable Summary
The third quarter of 2011 continued to bring a great deal of disappointing news to all economics agents: consumers, businessmen, and policymakers alike. The slowing recovery and volatility continue to generate a great deal of uncertainty as the economy begins the fourth quarter of the year. 2011 has proved to be a year where much of the early financial market gains for equity investors have now been erased and signs of traction in the labor markets have not yet materialized.
by Brian Allen, CFP®, QPA
President
Monumental changes may be coming to the private retirement system in the United States. Think it can’t happen? A quick review of retirement history shows that our current system is pretty unusual.
Retirement is a recent phenomenon in human history. Private pensions (employer sponsored plans) were not even invented in any substance until 1875 when the American Express Company instituted one for its employees. The Baltimore and Ohio (B&O) Railroad joined the movement in 1880. Still though, by 1940, less than 20% of all employees in government and industry were covered by private pensions. Source: investmentsandincome.com.
The Social Security Act was passed in 1935 to facilitate “old age insurance” (65 years of age and older). It’s interesting to note however, that the average life expectancy in 1935 was 61.7 years. Source: infoplease.com.
The Employee Retirement Income Security Act (ERISA) was passed in 1974 to address problems with the private retirement system. Then, one of the primary concerns was for Read the rest of this entry »
Background
On October 14, 2010, the Department of Labor (the “Department”) issued a final regulation under section 404(a) requiring plan administrators to provide participants and beneficiaries in participant-directed individual account plans specific information regarding certain plan features, plan investments, and plan expenses. The purpose of these final regulations is to improve fee transparency and to help participants make informed decisions in managing their individual accounts. The regulation represents a third wave of recent fee-oriented disclosure rules.
Throughout the year we, at Pension Consultants, Inc., have been actively working with Plan Sponsors and their record keepers to prepare sensible compliance strategies before the effective date of fee disclosure regulations. The final rule applies to plan years beginning on or after November 1, 2011 – this means January 1, 2012 for calendar year plans – and under the regulation’s transitional rule, the initial disclosures must be made no later than 60 days after such applicability date. However, in July, the Department modified the transitional rule and extended the time to provide the initial disclosures so that most employers will not be required to make the initial disclosures until May 31, 2012.
The new disclosure rules will significantly increase the Read the rest of this entry »
We are excited to announce the next Pension Consultants Educational Series webinar—Target Date Funds: Guidance for Fiduciary Prudence. The event will be held Thursday, September 22, at 11 am Central and will feature a presentation by David A. Richards, CFP®, Director, Investment Services.
The one hour webinar is a great opportunity for you to explore the fundamentals of Target Date Funds and determine whether or not TDFs are right for your retirement plan, and if so, what you need to evaluate in order to make a prudent selection.
At the end of the presentation, you will have an opportunity to ask questions and receive feedback from David regarding TDFs.
For more information, or to register visit our website.
We hope you’ll join us!
