3D"Description:

December 29, 2011

Department of Labor Deadline for Implementation
of Fee Disclosure Regulations is Fast Approaching<= /u>

The Department of Labor (DOL) deadline for compliance with new (ERISA) retirement plan disclosure regulations is fast approaching. The DOL issued service provider fee disclosure ERISA regulations because of the varying type= s of services available to retirement plans and the complex ways in which service providers are compensated for such services. New participant fee disclosure regulations are designed to benefit participants in participant-directed individual account plans. Because of the importance of plan fees and their effect on plan assets, the DOL issued both sets of new regulations to br= ing more transparency to fees, to allow plan fiduciaries to better moni= tor and control them, and to allow participants to make better informed decisions.

Participant regulations. DOL participant disclosure regulations require plan administrators of participant-directed individual account plans to provide regular, detailed information to participants and beneficiaries including:

In= formation about plan structure, investment options, brokerage windows, a= nd other similar arrangements allowing investment selection;=

Di= sclosure of fees and expenses for general plan administrative services = that may be deducted from participant accounts;

Di= sclosure of fees and expenses deducted specifically from an individual's account based on the actions taken by the participant.

Participants must receive a quarterly statement reveal= ing prior quarter plan related fees and expenses deducted from their account.

Comprehensive investment related information must also= be disclosed. Certain core information has to be disclosed with regard= to each investment option, including performance data, benchmark information, fee and expense information, and a glossary of investm= ent terms. You can obtain a model chart at the DOL= website showing how investment fund returns and disclosure informat= ion is to be provided (www.dol.gov\ebsa\participantfeerulemodelchart.doc)= .

Service provider regulations. DOL= regulations also were issued requiring service providers to qualifi= ed retirement plans that are generally expected to receive $1,000 or m= ore in compensation to disclose fees to the plan in advance of entering, renewing, or extending a service arrangement. With respect to any c= hanges to previously disclosed information, the service provider must noti= fy the plan no later than 60 days after the service provider is inform= ed of the changes. Disclosures must be in writing and must include a description of the services, a description of the indirect and dire= ct compensation expected, and a description of how compensation is pai= d.

Effective dates. The effective date for the service provider disclosure regulations was extended until April 1, 2012. T= he participant disclosure regulations also take effect in 2012, and initial requir= ed disclosures to participants (existing and newly eligible) must be furnished no later than May 31, 2012 for calendar year plans (non-calendar year plans should review effective date guidance for = the applicable compliance date).

Plan administrators should be working with plan service providers (including investment providers) to meet plan disclosure requirements.

2012 LIMITS

The Government has announced annual cost-of-living adjustments to dollar limits affecting qualified retirement and cer= tain other plans. The 2011 and 2012 limits are as follow= s:

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= SECTION 401(k) PLAN and SECTION 403(b) PLAN LIMITS<= /p>

= Aggregate Section 401(k) pre-tax and Roth salary deferrals by employees

= Maximum Section 403(b) pre-tax and Roth contributions to tax-shelter annuities

= Age 50 or older "catch-up" contribution dollar limit dollar limit

= COMPENSATION LIMITS

= Maximum annual includible compensation limit

= STATE/LOCAL AND TAX-EXEMPT SECTION 457 PLAN LIMITS

= Maximum Section 457(e)(15) deferral dollar limit by employees<= /span>

= Age 50 or older "catch-up" contribution dollar limit (governmental)

= ANNUAL SECTION 415 DOLLAR LIMITS<= /p>

= Defined benefit maximum (Section 415(b))

= Defined contribution maximum (Section 415(c))

= HIGHLY COMPENSATED EMPLOYEES<= /p>

= Compensation Limit (for look-back year)

= EMPLOYEE STOCK OWNERSHIP PLANS<= /p>

= Threshold amount for exception to five-year distribution requirement

= Incremental amount for distribution beyond five years

= KEY EMPLOYEE OFFICER IN TOP HEAVY PLAN

= SIMPLIFIED EMPLOYEE PENSIONS (SEPs)

= Compensation at which plan participation is mandatory

= SIMPLE PLANS

= Deferral limit

= Age 50 or older "catch-up" contributions<= /p>

= PENSION BENEFIT GUARANTY CORPORATION <= /p>

= Maximum guaranteed monthly benefit at age 65

= SOCIAL SECURITY

= Maximum taxable earnings subject to FICA tax:

= OASDI portion=

= Medicare portion

= Maximum FICA tax

= FICA contribution rates have not been finalized for 2012. For 2011 the= taxrate is 4.2% for employees (OASDI), 6.2% for employers (OASDI), and the 2011 Medicare rate was 1.45% each for employees and employers.

= HEALTH SAVINGS ACCOUNT ("HSA")

= Maximum Annual Contribution limits:

= Single-

Family-=

2011 &= nbsp; 2012&nbs= p; = ;

$16,500 = ; $17,000

$5,500 = $5,500

$245,000 &nbs= p; $250,000

$16,500 = ; $17,000

$5,500 $5,500

$195,000 &nbs= p; $200,000

$49,000 = ; $50,000

$110,000 &nbs= p; $115,000

$985,000 &nbs= p; $1,015,000

$195,000 &nbs= p; $200,000

$160,000 &nbs= p; $165,000

$550 &n= bsp; $550

$11,500 = ; $11,500

$2,500 = ; $2,500

$4,500.00 &nb= sp;$4,653.41

$106,800 &nbs= p; $110,100

Unlimited &nb= sp; Unlimited

$3,050 $3,100

$6,150 $6,250

If you have any questions please contact Ed Hammond at 2= 48.988.1821 or ehammond@cl= arkhill.com.

= Note: This document is not intended to give legal advice. It is comprised of general information. Employees facing specific issues should seek the assistance of an attorney.

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About Clark Hil= l
Clark Hill PLC is a full-service law firm that provides business legal services, government and public affairs, and personal legal services = to our clients throughout the country. With offices in Arizona, Illinois, Michigan and Washington, DC, Clark Hill has more than 200 attorneys a= nd professionals.

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For more information on Clark Hill PLC,
please visit clarkhill.com or call 800.949.3124