Pension Protection Act of 2006
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The Pension Protection Act of 2006 (Pub. L. 109–280), 120 Stat. 780, was signed into law by U.S. President George W. Bush on August 17, 2006.
This legislation, now public law, requires companies who have underfunded their pension plans to pay additional premiums and extends the requirement of providing extra funding to the pension systems of companies that terminate their pension plans. It also requires companies to more accurately analyze their pension plans' obligations, closes loopholes that previously allowed some companies to underfund their plans by skipping payments, and raises the cap on the amount employers are allowed to invest in their own plans. This will allow companies to invest more money into their pensions in times of financial prosperity.
Other elements:
- Removes barriers that prevent companies from automatically enrolling their employees in defined contribution plans
- Ensures that workers have more information about the performance of their accounts
- Provides greater access to professional advice about investing for retirement
- Gives workers greater control over how their accounts are invested
- Makes permanent the higher contribution limits for IRAs and 401(k)s that were passed in 2001, enabling more workers to build larger retirement nest eggs
[edit] External links
- President Bush Signs H.R. 4, the Pension Protection Act of 2006. White House (2006). Retrieved on 2006-10-21.
- The Pension Protection Act of 2006. White House (2006). Retrieved on 2006-10-21.
- The President's Statement on H.R. 4, the "Pension Protection Act of 2006". White House (2006). Retrieved on 2006-10-21.
