On August 17, 2006, President Bush signed the sweeping Pension Protection Act of 2006 (H.R. 4) into law. The bill, which is the most comprehensive overhaul of pension laws in 30 years, will: require employers to fully fund pensions, with time limits for funding shortfalls; encourage more employers to use automatic enrollment in 401(k) plans; increase 401(k) contribution limits; require single-employer plans that are fully funded to pay variable-rate premiums to the Pension Benefit Guaranty Corporation (PBGC); set standards for retirement plan compliance with age discrimination rules (see below for more on this topic); and much more.
We’ll have a full report on the new Act in an upcoming issue of the California Employer Advisor.
Join us this fall in San Francisco for the California Employment Law Update conference, a 3-day event that will teach you everything you need to know about new laws and regulations, and your compliance obligations, for the year ahead—it’s one-stop shopping at its best.
Additional Resources:
Pension Reform information U.S. Department of Labor