Summary of the Pension Protection Act of 2006 (PPA)

President Bush signed the PPA on August, 17, 2006. The Act contains new comprehensive pension funding reforms affecting defined benefit pension plans and other significant changes affecting hybrid, defined contribution, nonqualified deferred compensation, and health plans.

Many of the reforms do not take affect right away. For example, most defined benefit plan funding reforms take effect for the 2008 plan year, with the temporary funding rules under PFEA generally extended through 2007. Other changes have effective dates from 2006 (i.e., immediately) to 2008 or beyond.  

Click on the links below to read about aspects of the new legislation that are most likely to impact our clients: