Employee Benefits and Executive Compensation Update

December 2005

Cost-of-Living Adjustments for 2006

The IRS issued the cost-of-living adjustments applicable to dollar limitations for employee pension benefit plans for the 2006 tax year. Effective January 1, 2006, the limits are as indicated below.

	2005 Plan Year	2006 Plan Year
Defined Contribution Plan Limit	$42,000	$44,000
Defined Benefit Plan Limit	$170,000	$175,000
401(k) Elective Deferral Limit	$14,000	$15,000
Qualified Plan/403(b)/457 Catch-Up Contribution Limit	$4,000	$5,000
Annual Compensation Limit	$210,000	$220,000
Highly Compensated Employee Limit (20% absolute)	$95,000	$100,000
409(o) Threshold	$850,000/$170,000	$885,000/$175,000
SEP Minimum Compensation	$450	$450
SIMPLE Plan Account Limit/Catch-Up Contribution Limit	$10,000/$2,000	$10,000/$2,500
Section 457 Plan Deferral Limit	$14,000	$15,000
Social Security Wage Base	$90,000	$94,200
Montly limitation on HSA contribution deductions for individuals with self-only coverage under an HDHP	1/12 of the lesser of annual deductible or $2,650	1/12 of the lesser of annual deductible or $2,700
Montly limitation on HSA contribution deductions for individuals with family coverage under an HDHP	1/12 of the lesser of annual deductible or $5,250	1/12 of the lesser of annual deductible or $5,450
Required minimum individual deductible of a qualifying HDHP	$1,000	$1,050
Required minimum family deductible of a qualifying HDHP	$2,000	$2,100
Annual out-of-pocket limits for a qualifying HDHP for self-only coverage	$5,100	$5,250
Annual out-of-pocket limits for a qualifying HDHP for family coverage	$10,200	$10,500
Fringe benefit exclusion for transportation in a commuter highway vehicle and any transit pass	$105	$105
Fringe benefit exclusion for qualified parking	$200	$205