Faster Vesting, Automatic Enrollment Highlight Defined Contribution Provisions of New Pension Act

Just before its summer recess, on August 3, 2006, Congress passed the Pension Protection Act of 2006, a comprehensive pension reform law, which President Bush is expected to sign. Although much of the press coverage has dealt with the impact of the new law on defined benefit plan funding, the Act also contains a number of provisions dealing with 401(k) and other defined contribution plans, new and revised notice and disclosure requirements for all plans, plan investment and fiduciary issues and restrictions on funding nonqualified deferred compensation arrangements. This Alert, one of a series of alerts summarizing the Act, highlights the Act provisions dealing with 401(k) and other defined contribution plans.