by Thomas M. Christina, Ogletree Deakins, Greenville, S.C.
In August, President Bush signed the Pension Protection Act of 2006, which includes many benefits-related amendments to the Internal Revenue Code (IRC) and the Employee Retirement Income Security Act (ERISA).
Among other things, the new law will:
- Result in broad-ranging changes in the funding requirements for defined-benefit pension plans.
- Impose potentially heavy new financial obligations on employers with multi-employer pension plans.
- Change important aspects of plan administration for many 401(k) and other defined contribution plans.
The law will bring about significant changes in how single employer and multi-employer defined-benefit plans are funded. For single-employer plans, pensions must predict when liabilities will occur: those that will come due within five years, between five years and 20 years or after 20...(register to read more)