To view or print the PDF content on this page, download the free Adobe® Acrobat® Reader®. November 7, 2007 Treasury, IRS Issue Additional Pension Protection Act Guidance Washington, DC--The Treasury Department and the Internal Revenue Service ( Employers that offer 401(k) plans must specify what contributions, if any, will apply to employees covered under the plan who do not make a specific election to contribute. Historically, most employers designed their plans to treat an employee who takes no action as if the employee elected no contributions. There has been a new trend, however, to change this practice. Under these new arrangements, called automatic contribution arrangements, the default is switched and employees who take no action are automatically enrolled in the 401(k) plan at a specified percentage. Last year's Pension Protection Act included a number of provisions to make it easier to adopt these automatic contribution arrangements. Last week, the Department of Labor released regulations that addressed the investment issues that relate to automatic contribution arrangements. The proposed regulations released by Treasury and the
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