The new pension reform law: What it means to you — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

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.

Pension-plan funding

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)

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