Benefits April 27, 2012

Ford Offers Lump-Sums to De-Risk Pension

April 27, 2012 (PLANSPONSOR.com) - Ford Motor Company announced it will offer approximately 90,000 eligible U.S. salaried retirees and former employees the option to receive a voluntary lump-sum pension payment. 

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In its first quarter earnings statement, Ford said the voluntary payout is part of the company’s long-term strategy to de-risk its global funded pension plans. If an individual elects to receive the lump-sum payment, the company’s pension obligation to the individual will be settled.

Payouts will start later this year and will be funded from existing pension plan assets. This is in addition to the lump-sum pension payout option available to U.S. salaried future retirees as of July 1, 2012.

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“Continuing to improve the underlying strength of our balance sheet remains a fundamental part of financing the One Ford plan,” said Bob Shanks, Ford executive vice president and chief financial officer. “Providing the option of a lump-sum payment to current salaried U.S. retirees and former employees will reduce our pension obligations and balance sheet volatility.”

Compliance April 27, 2012

IRS Announces Limitations for Annual HSA Contributions

April 27, 2012 (PLANSPONSOR.com) – The Internal Revenue Service (IRS) issued the 2013 inflation adjusted deduction limitations for annual contributions made to a health savings account (HSA) under section 223.   
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For 2013 the annual limitation on deductions under  §223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan is $3,250. The annual limitation on deductions under §223(b)(2)(B) for an individual with family coverage under a high deductible health plan is $6,450.

Also for 2013, a “high deductible health plan” is defined under § 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,250 for self-only coverage or $2,500 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,250 for self-only coverage or $12,500 for family coverage.

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Revenue Procedure 2012-26 is at http://www.irs.gov/pub/irs-drop/rp-12-26.pdf. 

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