Pension Protection Act of 2006


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Pension Protection Act of 2006

Legislation in the United States requiring companies to pay higher premiums to the Pension Benefit Guaranty Corporation (which insures pensions) if those companies' pensions are underfunded. It also provides greater tax benefits for companies that invest in their own pensions.
References in periodicals archive ?
The most recent modification to pension funding rules (the Pension Protection Act of 2006) further alters the amortization of unfunded obligations.
First, Congress must insist on strict, unwavering adherence to the funding reforms of the Pension Protection Act of 2006 CPPA") and may need to amend the legislation to facilitate compliance.
1) You could await final legislative and regulatory enactment by Congress and the Department of Labor and then determine your course of action; or, 2) you could continue to follow the guidelines set forth in the Pension Protection Act of 2006.
The Pension Protection Act of 2006 required the IRS to get a more accurate picture of the tax-exempt world, according to Bob Ottenhoff, president and CEO of GuideStar.
Target-date fund usage has increased through a number of avenues: participants actively choosing the funds; the funds' designation as one of three eligible 'qualified default investment alternatives,' or QDIAs, under the Pension Protection Act of 2006; and the growth of automatic enrolment plans, which frequently designate target-date funds as the default investment for participants as they are put in the plan.
The Pension Protection Act of 2006 stipulates that most tax-exempt organizations, other than churches or other houses of worship, must file a yearly return or notice with the IRS.
The deemed IRA was originally scheduled to be terminated in 2010 under the "sunset" provisions of EGTRRA 2001, but was subsequently made permanent by the Pension Protection Act of 2006.
The Pension Protection Act of 2006 introduced a new notification requirement for small tax-exempt organizations that are not required to file an annual information return under IRC [section] 6033(a)(1).
To foster greater participation among workers who have access to such plans, Congress included provisions that facilitate plan sponsors' adoption of automatic enrollment policies in the Pension Protection Act of 2006. To foster greater retirement savings among workers who do not have access to an employer-sponsored plan, proposals have been made at the federal level for an "automatic IRA" and at the state level for state-based programs.
VanDerhi said as a result of the Pension Protection Act of 2006, many 401(k) plan sponsors appear to be offering lifecycle and target-date funds, which automatically rebalance asset investments into more age-appropriate allocations.
Declining investment values has resulted in many companies' inability to fund pensions under the Pension Protection Act of 2006.