On October 20, 2011, the Internal Revenue Service published news release IR-2011-103, which details the cost-of-living adjustments for dollar limitations for pension plans and other retirement-related benefits for the 2012 tax year.
Of particular note for plan sponsors is the fact that the elective deferral limit has been increased from $16,500 to $17,000 and the annual limitation for contributions to defined contribution plans increased from $49,000 to $50,000. In addition, the annual compensation limit increased from $245,000 to $250,000. This is the first increase in those areas since the current limits went into effect for 2009.
Continue reading IRS Announces Pension Plan Limitations for 2012
Timing is everything. In deciding to launch a blog specifically geared to the public fund fiduciary, we knew there was a broad landscape of legal issues that are now gaining wide scale attention. We intend to touch on many of these issues in subsequent installments. Hopefully, we will have the opportunity to drill down on major issues that are of importance to our clients and readers. Of the many issues that could serve as the first entry, we prepared discussions on two that seemed equally urgent: the fiduciary duty to protect pension records requested under “right to know” laws and the potential impact of bankruptcy filings of local governmental plans. With yesterday’s bankruptcy filing by the city of Harrisburg, Pennsylvania, the decision has been made for us. We value your time and hope you find this discussion, and those that follow, to be worthwhile.
Continue reading Pensions In Bankruptcy