Highway Funding Bill Maps Directions for Pension Plan Interest Rates

Pension funding guidelines travelled an unusual road this summer as part of the transportation bill "Moving Ahead for Progress in the 21st Century Act" (also known as MAP-21), which was signed into law on July 6, 2012.

Taking a detour from the normal highway reauthorization programs funded by the Highway Trust Fund, MAP-21 also contained a mile post known as Section 40312, Pension Funding Stabilization. This section amends subparagraph (C) of section 430(h)(2) of the Internal Revenue Code of 1986, as well as the Employee Retirement Income Security Act of 1974 ("ERISA").

Treasury Department Issues New Pension Segment Rates

Interest rates to be used in calculating pension funding obligations are now required to be established by the Treasury Department on an annual basis. Technically speaking, these pension interest rates are known as 25-year average segment rates and adjusted 24-month average segment rates. Accordingly, three new segment rates of 6.15%, 7.61% and 8.35% were released by the Treasury Department on August 16, 2012 in IRS Notice 2012-55.

Section 430 specifies the minimum funding requirements that generally apply to single-employer defined benefit pension plans pursuant to § 412. Section 430(h)(2) specifies interest rates that are used for purposes of calculating the minimum required contribution.

Section 40211(a) of MAP-21 adds § 430(h)(2)(C)(iv), generally effective for plan years beginning on or after January 1, 2012.

The Treasury and the Internal Revenue Service intend to issue additional guidance in the near future on other issues relating to the application of the MAP-21 amendments, including guidance relating to benefit restrictions and transition issues.

Implications of MAP-21 for Pension Plan Funding

The new segment rates average to an effective interest rate of 7.37%, which compares favorably to the previous average of 5.3%.

The rate of return assumed in calculating future pension obligations plays a critical role in determining current taxpayer liabilities, even though the longer term commitments remain fixed. As the published guidelines for rates of return increase, current funding requirements decrease. Conversely, a lower assumed rate of return requires a higher current funding level in order to meet future obligations.

An actuarial rule of thumb is that when the funding valuation discount rate changes by 1%, a pension plan's liability drops by approximately 10%, according to CFO.com.

MAP-21 provides sponsors of single employer plans with greater interest rate predictability by establishing a floor and a ceiling for variable interest rates based on the average annual segment rates over a 25-year period.

Confirmation of a lower average pension funding rates allow businesses to move forward in planning capital investments, acquisitions, and job creation, according to the American Benefits Council, a public policy organization representing principally Fortune 500 companies.

Milliman, in a recent report titled "Milliman analysis: July's $120 billion funded status decline pushes pension deficit to a record $533 billion," states:

While several plan sponsors have announced reduced contributions, we feel that a majority of the Milliman 100 companies will continue to prudently fund the pension deficits in their respective plans and presumably continue with their existing pension de-risking funding strategies rather than lower their contribution level to satisfy minimum standards.

Briggs & Stratton Corporation, H.J. Heinz Company, and others are beginning to disclose the impact of MAP-21 on expected future pension funding contributions in SEC filings and other public announcements.

Impact of MAP-21 on PBGC Premiums

The Pension Benefit Guaranty Corporation ("PBGC") issued "Technical Update 12-1: Effect of MAP-21 on PBGC Premiums" on August 28, 2012 (see www.pbgc.gov/res/other-guidance/tu/tu12-1.html ).

Effective beginning in 2013, MAP-21 changes the PBGC flat and variable premium rates and puts a cap on the variable-rate premium.

The guidance in this Technical Update supersedes any inconsistent guidance in PBGC's 2012 premium instructions and will be reflected in the 2013 premium instructions.

In Conclusion

"Moving Ahead for Progress in the 21st Century" (MAP-21) offers plan sponsors some welcome short term relief through greater predictability of interest rates at a higher level and within a prescribed range. Since pension obligations remain unchanged in the long run, however, plan sponsors must weigh potential short term funding relief against the goal of narrowing what remains a significant unfunded liability gap for many.

Tradesmen Liability Insurance

Regarding those people that have began their personal business in the trades, tradesmen liability insurance might be the most effective alternatives of protecting that business. There are a number of things that could occur to somebody while they are operating their particular business, and in many cases they'll not now have the financial resources to protect their company against these issues. It is often tempting for the tradesman to neglect getting this insurance in an effort to spend less. However, eventually the cost of tradesmen liability insurance could very well be negligible, in comparison to the economic result of a disaster, personal harm, client harm, larceny or wanton damage. Having this sort of insurance coverage in position can present you with the protection you require while also delivering you with the reassurance of realizing that your livelihood is preserved.

Who Needs Tradesmen Insurance?

Primarily, someone possessing his or her own trade business or who works as a self employed tradesman can benefit via this sort of insurance coverage. It can help cover the prices of a quantity of different things, which range from replacing stolen tools, repairing vandalism, or covering damages at a client's site because of some aspect of your work. In some instances, tradesmen liability insurance can often cover other costs on top of that, including income replacement should you become injured, or even some form of health plan. A lot of these kinds of things are often overlooked by the regular tradesman, and they may feel that nothing bad can happen to them or their particular business. Subsequently, they may attempt to cut costs by not getting this kind of insurance. Even so, it may just take one devastating event to bring about total financial ruin to a tradesman and their business. Preferably, it's far better to pay the expenditure of tradesmen liability insurance, and know that your business and income are being secured.

How to pick out Tradesmen Insurance

Picking tradesmen liability insurance can be a little complicated. There are many of distinct points to consider, and it's important to pick a policy designed to supply all the protection you require, for a cost you can pay for. Therefore, it's commonly recommended to seek advice from an insurance agent who understands and specializes in these kinds of policies. You'll wish to be sure to fully understand every point of the coverage and be certain it will provide for all your expectations before placing your signature to the contract.

Autoresponders! A Must For Any Internet Marketer

The best friend an Internet Marketer can have is his autoresponder. Without it, he or she is doomed to failure. The only way to make money is to promote yourself in order to build your list of subscribers, so that you can use your autoresponder to then advertise whatever product you wish to promote.

For those who don't know what an autoresponder is, it is a piece of software that automatically responds to a request for information from a subscriber and then sends follow-up messages to this subscriber. It is a 24/7 sales operative!

When you sign up online for an ebook, ecourse, "how-to" instruction manual or anything, you will get a reply from an autoresponder. The next day you will get another email and the day after that another and so on.

The autoresponder has been set up with a series of pre-written emails by the owner of the autoresponder. Bear in mind that the average person needs to see an ad about seven times before buying a product, so the owner of the autoresponder is making sure that you see his stuff every day until you buy, sign up etc.

You will need to pay for your autoresponder service. It usually costs a little less than $20 a month, although some charge more, the more sign-ups you have. There are free autoresponders available, but, in general, deliverability is not good and they smack of amateurism. Any serious marketer will avoid free autoresponders like the plague.

The Autoresponder as an Affiliate Program

Because you have to pay for your autoresponder, the person that introduced you to it will receive a commission. That means you can make a living out of your autoresponder by promoting it as an affiliate program. The best autoresponders were reckoned to be Aweber and GetResponse, but more recently they have been joined by a third one, which is, arguably, equally as good as the other two as an autoresponder, but has the added advantage of a ten level payment plan for its affiliates, whereas the others only have one or two levels. This means that you stand to make money out of the efforts of a lot more people.

Therefore, when someone signs up for one of your offers, your emails to him can suggest, several times during the course of your email series, that he joins your particular autoresponder program, along with any other offer you wish to promote.

Why You Should Invest In Your Own Power Tools In 2012

The power tools market has shown signs of demand increase according to recent stats and trends in 2012. Keynote, a leading market intelligence firm, indicated that in the United kingdom alone, there is a 3.3% market increase in the power tools sector. This trend has been going on since 2010, and did not slow down this year.

In Australia and the United States, more and more people are choosing to purchase DIY (do-it-yourself) equipment as well.

The reason why power equipment are becoming trendy nowadays is because of the decline in the property market. The rise in the costs of living expenses in first world countries, coupled with the economic depression in the United States in 2008, has pushed a lot of homeowners to make tough decisions regarding their properties. Instead of getting more expensive properties, a lot of homeowners chose to simply re-decorate their current home. Instead of hiring professional home improvement experts, many people nowadays are choosing to do the basic construction and repair tasks themselves.

This shift in demand within the worldwide market led to increase in the purchases of power equipment and trade tools all over the world. However, because many people are too busy to drop by a local hardware store to canvass and purchase their tools, a new trend has emerged in the form of online hardware stores. These "online hardware" stores are pretty much like traditional tool shops. The only difference is that they can be found on the internet, and the entire buying process can take place using secure online payment gateways and credit card transactions.

The truth is, a lot of people are wary of buying big ticket items online, especially if the product is not a downloadable or cannot be delivered via online means. When it comes to this issue, the most important precaution is to transact only with online tool suppliers who use a secure SSL server on their e-commerce platform. Moreover, the company with whom the purchase is made should have a good reputation in the industry.

Now that the tools industry has gone online, there is no turning back. With the demand for power equipment steadily increasing, there is no doubt that equipment lovers will see lots of new online shops to buy DIY tools from. New market players will also emerge, and customers will have more choices of brands starting now. DIY home improvement is expected to be a strong trend for many decades to come.

Understanding the Importance of Estate Planning

The purpose of estate planning is to help you achieve your personal and family goals after you pass away. It ensures that your assets will end up in the hands of those people whom you wish them to go to, so that you can reach your personal and financial goals even after you die. You also can reduce the amount of taxes paid by planning your estate in the right way to ensure that your heirs receive a larger inheritance.

The saying that the only two sure things in life are death and taxes has existed for centuries. While no one likes to think about dying, it is a certainty and something that must be faced. An plan for your estate consists of a set of documents that help you plan for taxes and death and it is something that nearly everyone needs -- regardless if their financial and familiar affairs are complex or simple.

The documents that make up an estate plan help you avoid problems that often arise upon your death. Many of these are problems most of us never think of during our lifetimes, or are things that we simply choose not to think of. But if there is no plan in place, these issues are handled by the courts. It is therefore very important to have a plan in place so that you can decide for yourself the best choices for your family, such as who will care for minor children, who will receive your property, and who will finalize your affairs.

Estate planning can be a rather complicated matter, and it does require good judgment to ensure that you achieve the outcomes you desire. It gives you the choice while you are alive to determine who, what, when, where and how your estate will be handled. It also allows for substantial savings when dealing with tax issues, court costs and attorney fees. Planning your estate also helps your loved ones avoid the burden of having to deal with bureaucracy and confusion after you pass away.

Unfortunately, many people do not plan their estates because they believe that they don't need an estate plan or they believe that their family members can handle the task of dividing up their assets. However, if you fail to have a solid estate plan in place to handle the settlement of your affairs after you die, the laws in your state will determine what must be done.

This may result in family disagreements, assets going to the wrong people, and liability for estate taxes that could have been avoided. If you don't have an estate plan in place before you die, your assets and affairs can be tied up for months. It is therefore of the utmost importance to plan your estate with care so that everything is handled properly (and according to your wishes) upon your death.

Planning an estate can be a bit overwhelming. However, a reputable estate planning attorney has the knowledge and experience necessary to guide you through the process while keeping your interests and wishes in mind. When you have a good plan in place, you are given the peace of mind knowing that all of your affairs will be handled as you wish after you leave this earth.

List Building Tips - Signatures

In this installment of List Building Tips, I want to talk about something as innocuous as signatures. If you think you can't build a list from something so simple, you might want to read this article.

Ah yes, the signature. One would think that the average person doesn't even pay attention to signatures. Well, it kind of depends on what comes BEFORE the signature. And THAT is ultimately what I'm going to focus on in this article.

First thing we have to do is figure out where signatures appear. Well, the most common places are at the end of emails and forum posts. Let's start with emails.

I know a lot of people will say that if you're sending out an email to somebody then they're probably already on your list. Well, that's not entirely true. If you have any kind of web presence, like I do, you're going to get people writing to you out of the blue with questions. One way of getting them on your list is with a simple email reply answering their questions and then, subtly at the bottom under your signature, include a description and link to your newsletter.

If the email you sent answered the question that was asked and actually helped the person asking it, there is a very good chance that they will notice your signature, notice that you have a newsletter, and just might subscribe to it thinking that IF they do, they're going to get even more great advice related to the subject that they're interested in enough to write to you in the first place.

Point is, in any email correspondence that you have, including a signature with your newsletter link gives you just one more opportunity to get a subscriber. Even if you only get one subscriber per day using this method, that's 365 new subscribers each year. Trust me, every single one counts.

What about forum posts? Well, most forums have rules when it comes to signatures. Some don't allow them at all. Some only allow a few lines. Some only one line. Whatever the restriction is, it doesn't really matter unless signatures aren't allowed at all. But if they are, they can be very effective in getting subscribers. The key is in what comes before them.

That is your forum post content. And this is where so many marketers drop the ball. They'll respond to a forum thread with a line or two answer that really doesn't help the person asking the question much at all and yet they expect to have people signing up to their list in droves. It doesn't quite work that way. But, if you answer questions in depth and really contribute something of value to the forum, your posts will not only be read but they'll also draw attention to your signature. In fact, I get a number of subscribers from my forum post signatures.

Don't minimize the signature. It may seem innocuous. But used correctly, it can be a very powerful tool in building your list.

To YOUR Success,

Steven Wagenheim