Pension Protection Act of 2006
01/03/11
Bill
Request for Information
On August 17, 2006, President Bush signed the Pension Protection Act of 2006 (PPA) [PDF] into law. The Senate passed the bill on August 3, 2006, and the House of Representatives passed it on July 28, 2006. The provisions of the law are summarized in a report by the Joint Committee on Taxation [PDF]. A number of these provisions are discussed in the following links.
The Pension Protection Act of 2006:
- Allows companies to set up new kinds of plans
- Changes the funding of traditional pension plans
- Makes plans fairer to women
- Makes increased contribution limits permanent
- Affects how plan money is invested
- Encourages people to save for themselves
- Increases the number of people earning benefits
- Increases information provided by plans
- Allows companies to transfer “surplus” money out of pension plans
- Increases penalties and bond amounts for plan fiduciaries
- Changes the calculation of lump sum payments
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