The Top 10 Things You Need to Know About Pension Reform

THE PENSION PROTECTION ACT OF 2006

On August 17, 2006, President Bush signed into law the Pension Protection Act of 2006 ("PPA"), over 900 pages of legislation hailed as the biggest reform of the U.S. pension laws in over 30 years. While the main purpose (and publicity) for the PPA was to improve the underfunding of the nation's defined benefit pension plans, by changing the rules for required actuarial funding of such plans, it also contained many other provisions impacting all retirement plans.

THE TOP 10 THINGS YOU NEED TO KNOW ABOUT PENSION REFORM
10. The PPA Increases Funding Requirements for Defined Benefit Plans.
9. EGTRRA Changes are Made Permanent.
8. The PPA Requires Faster Vesting for All Defined Contribution Plans.
7. The PPA Makes Rollovers to Roth-IRAs More Flexible.
6. The PPA Permits Non-Spouse Beneficiary Rollovers.
5. The PPA Removes the Controversy Over, and Makes Cash Balance Plans Legitimate.
4. The PPA Creates a New Combined Defined Benefit and 401(k) Plan.
3. The PPA Legitimizes Automatic Enrollment for 401(k) Plans.
2. The PPA Permits Plans to Provide Participants with Investment Advice for Self-Directed Accounts.
1. There is a Lot More to Consider.

We can advise you on how to meet your company's benefits goals, and help you apply these PPA changes to your particular plan and circumstances. Contact Us today.