 In
a recent survey, nine out of ten participants in defined contribution
retirement plans (like the AHRP) indicated that what they want most
from their retirement plan is a guaranteed income that they cannot
outlive.
In April 2012, a guaranteed income option will be
offered through the AHRP. This option will allow participants to
confidently withdraw a pre-determined income from their retirement
savings without the risk of depleting their savings during their
lifetime.
Look for AHRP presentations at you place of
employment as well as mailings during the next several months that
will describe how this option will work.
IRS Deferral Limits Increase For 2012
The IRS has announced an increase to the pre-tax
and/or after-tax (Roth) contributions an individual may make to their
employer sponsored retirement plans (like the AHRP and similar
commercial plans). AHRP contribution rate changes can be made through
the AHRP Web site
(http://www.AHRP.com) or by calling the AHRP Retirement Center at 1
(800) 730-2477.
Annual deferral limit for those under age 50 by year
end: $17,000
Annual deferral limit for those age 50 and above by
year end: $22,500
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2012 Interest Rates
AHRP Capital Preservation Account
The 2012 guaranteed interest rate for the AHRP
Capital Preservation Account is 3.20%. This represents a 0.30%
decrease from the credited rate of 3.50% during 2011.
AHRP Loans
The interest rate on AHRP loans is tied to the yield
on the AHRP Capital Preservation Account at the time the loan
commences. New loans taken during 2012 will have an interest rate of
3.20%
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2011 Employer Contributions
Following the end of each calendar year, a
calculation is made to determine the employer basic and matching
contributions for the year just ended. These contributions are
typically added to AHRP participants’ accounts during the latter part
of January (for the previous year).
If you were eligible to receive employer basic and
matching benefits for 2011, your AHRP Account Statement for the
quarter ending March 31, 2012 will include these contributions.
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