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October 12, 2008    DOL > EBSA > PPA '06   

The Pension Protection Act Of 2006

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IRS Regulations And Other Guidance

  • Pension Protection Act of 2006 (PL 109-280) - Includes information on the PPA, newsletter articles, published guidance, and other information.

    The Internal Revenue Service has posted on its Web site a sample notice to aid plan sponsors in satisfying the requirements of the IRS's proposed regulations on new safe-harbor qualified automatic contribution arrangements ( QACAs) and on eligible automatic contribution arrangements ( EACAs).  Use of this sample notice also satisfies the notice requirements under ERISA sections 404(c)(5) and 514(e)(3) and DOL’s final rule relating to Default Investment Alternatives Under Participant Directed Individual Account Plans.

PBGC Regulations And Other Guidance

  • Multi-employer Plan Elections under Section 1106 of PPA: On June 15, 2007, PBGC published a Notice under the Paperwork Reduction Act informing the public that it is requesting that the Office of Management and Budget (OMB) approve procedures on multi-employer plan elections under section 1106 of the Pension Protection Act of 2006. Section 1106, which was modified by an amendment in the May 25, 2007, supplemental spending legislation (Pub L. 110-028), allows certain single-employer plans to elect to be multi-employer plans pursuant to procedures prescribed by PBGC. The procedures were revised to take into account the recent statutory changes and the four comments received in response to the PBGC's April 13, 2007, Paperwork Reduction Act Notice. To obtain a copy of the request for approval, including the revised procedures, you may fax a request to the Disclosure Division of the Office of the General Counsel at 202.326.4042 or call them at 202.326.4040. The Disclosure Division will e-mail, fax, or mail the procedures and other information to you, as you request. Comments to OMB on the draft procedures are due by July 16, 2007.

  • Variable rate premium proposed rule: On May 31, 2007, PBGC published a proposed rule to amend PBGC's regulations on Premium Rates and Payment of Premiums. The amendments would implement provisions of the Pension Protection Act of 2006 that change the variable-rate premium for plan years beginning on or after January 1, 2008, and make other changes to the regulations. Public comments on the proposed rule are due by July 30.

  • Premium proposed rule: On February 20, 2007, PBGC published a proposed rule to amend PBGC's premium regulations to implement certain provisions of the Deficit Reduction Act of 2005 and the Pension Protection Act of 2006 that are effective beginning in 2006 or 2007. The provisions that would be implemented by this rule change the flat premium rate, cap the variable-rate premium for plans of certain small employers, and create a new "termination premium" that is payable in connection with certain distress and involuntary plan terminations. Public comments on the proposed rule are due by April 23.

  • Revisions to Technical Update 06-4: On August 30, 2006, PBGC issued Technical Update 06-4, Use of Corporate Bond Rate for Certain PBGC Purposes, which explains how the provisions of the Pension Protection Act of 2006 (“PPA”) relating to PBGC’s required interest rate for determining variable-rate premiums apply to certain PBGC requirements (in particular, reporting and disclosure requirements). The PBGC has revised this Technical Update: (1) to make some minor clarifying changes, and (2) to provide guidance on how the PBGC will apply Technical Update 96-7, Waiver for Small Employer Reporting of Missed Quarterly Contributions in light of PPA’s repeal of ERISA section 4011 (Notice to Participants) for plan years beginning after December 31, 2006.

  • Small Employer Variable-Rate Premium Cap: The Pension Protection Act of 2006 caps the variable-rate premium for certain plans maintained by small employers, effective for plan years beginning in 2007 and later. The cap applies to a plan if the aggregate number of employees of the contributing sponsors of the plan and all members of their controlled groups is 25 or fewer. For these plans, the variable-rate premium is capped at a per-participant rate of $5 multiplied by the number of plan participants. Thus, a qualifying small-employer plan would pay, at most, a total variable-rate premium calculated by multiplying the capped per-participant rate ($5 times the number of plan participants) by the number of plan participants, or $5 times the square of the participant count. For example, if the participant count is 20, the cap on the variable-rate premium is $2,000 [($5 x 20) x 20, or $5 x 202 = $2,000].

Background - Administration's Proposal For Pension Reform

Summary Materials

  • Administration's Single Employer Defined Benefit Pension Reform Proposal [View]

  • President Bush Signs H.R. 4, the Pension Protection Act of 2006 [View]

  • The PPA of 2006: Ensuring Greater Retirement Security for American Workers [View]

  • Treasury White Paper on Yield Curve 2006 [View]

  • Treasury White Paper on Yield Curve 2005 [View] • [Supplement]

  • PBGC White Paper on the Impact of the Administration's Pension Reform Proposal on Contributions, Funded Ratios, and Claims against the Pension Insurance System [View]

  • Bush Administration's Plan for Strengthening Retirement Security [View]

  • Single Employer Pension Reform Proposal [View] • [PowerPoint Presentation]

Speeches And Testimony

  • PBGC Executive Director Bradley D. Belt before the Senate Committee on Budget [06/15/05]

  • PBGC Executive Director Bradley D. Belt before the Senate Finance Committee [06/07/05]

  • PBGC Executive Director Bradley D. Belt before the Senate Committee on Health, Education, Labor, and Pensions, Subcommittee on Retirement Security and Aging [04/26/05]

  • Assistant Treasury Secretary Mark J. Warshawsky before the Senate Special Committee on Aging [04/12/05]

  • EBSA Assistant Secretary Ann L. Combs before the House Committee On Ways And Means, Subcommittee On Select Revenue Measures [03/08/05]

  • Assistant Treasury Secretary Mark J. Warshawsky before the House Committee On Ways And Means, Subcommittee On Select Revenue Measures [03/08/05]

  • PBGC Executive Director Bradley D. Belt before the House Committee On Ways And Means, Subcommittee On Select Revenue Measures [03/08/05]

  • EBSA Assistant Secretary Ann L. Combs before the House Education And The Workforce Committee [03/02/05]

  • Assistant Treasury Secretary Mark J. Warshawsky before the House Education And The Workforce Committee [03/02/05]

  • PBGC Executive Director Bradley D. Belt before the House Education And The Workforce Committee [03/02/05]

  • PBGC Executive Director Bradley D. Belt before the House Government Reform Committee Hearing, Subcommittee On Government Management, Finance, And Accountability [03/02/05]

  • EBSA Assistant Secretary Ann L. Combs before the Senate Finance Committee [03/01/05]

  • Assistant Treasury Secretary Mark J. Warshawsky before the Senate Finance Committee [03/01/05]

  • PBGC Executive Director Bradley D. Belt before the Senate Finance Committee [03/01/05]

  • Secretary Elaine L. Chao's Remarks from “Protecting the Retirement Security of America's Workers: The President's Plan for Reforming Private Defined Benefit Pension Plans” [01/10/05]

News Releases

  • U.S. Labor Department proposes rules on investment advice exemption for 401(k) plans and IRAs [08/21/08]

  • U.S. Department of Labor issues model notice for multiemployer plans in critical status [03/24/08]

  • U.S. Labor Department proposes civil penalty rules under the Pension Protection Act [12/18/07]

  • U.S. Department of Labor announces final rule on default investment alternatives for participant-directed plans - Regulation to boost workers' retirement savings [10/23/07]

  • U.S. Labor Department proposes new disclosure rules for multi-employer pension plans [09/13/07]

  • U.S. Department of Labor announces rules on selecting annuity providers for benefit distributions from pension plans [09/11/07]

  • U.S. Labor Department publishes civil penalty rules under Pension Protection Act [08/09/07]

  • Employee Benefits Security Administration releases field assistance bulletin on tax sheltered annuity programs [07/24/07]

  • U.S. Labor Department to hold hearing on computer model advice programs for individual retirement accounts and similar type plans [06/19/07]

  • U.S. Department of Labor Announces New Rules on Pension Distributions Under Qualified Domestic Relations Orders [03/06/07]

  • U.S. Labor Department Announces New Rule for Distributions to Missing Non-spouse Beneficiaries [02/14/07]

  • U.S. Labor Department Announces New Rule Implementing Pension Protection Act Cross-Trading Exemption [02/09/07]

  • Employee Benefits Security Administration Releases Field Assistance Bulletin on Investment Advice [02/02/07]

  • Employee Benefits Security Administration Releases Field Assistance Bulletin on Individual Benefit Statements and Diversification Notices [12/20/06]

  • U.S. Labor Department Proposes Pension Protection Act Revisions to the Form 5500 Annual Report for 2008 [12/08/06]

  • U.S. Labor Department Seeks Comments on Investment Advice Exemption for 401(k) Plans and IRAs [12/01/06]

  • Labor Department Issues Model Notice For Multi-employer Plan Election [11/30/06]

  • DOL Announces Proposed Rule on Default Investment Alternatives for Participant-Directed Plans [09/26/06]

  • Secretary of Labor Elaine L. Chao on Passage of Comprehensive Pension Reform [08/04/06]

  • President Looks Forward to Signing Pension Reform Legislation [08/04/06]

  • Secretary of Labor Elaine L. Chao Praises Senate Finance Chairman On Pension Reform Bill Markup [07/26/05]

  • Assistant Secretary of Labor Ann L. Combs Commends GAO Report On Pension Funding Rules [05/31/05]

  • Labor Department Testifies Before House Committee On Administration's Pension Reform Proposal [03/02/05]

  • Secretary of Labor Elaine L. Chao Statement On The Administration's Pension Reform Proposal [03/01/05]

  • Labor Department Testifies Before Senate Committee On Administration's Pension Reform Proposal [03/01/05]

  • Proposal to Strengthen Retirement Security Of Workers Announced by Secretary of Labor [01/10/05]

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