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Plan Sponsor Guide Participant Guide

Meaning Full

A participant perspective on the Pension Protection Act

Much already has been written—and more certainly will be written—about the Pension Protection Act. However, aside from its mammoth size and impact on retirement plans, there is a very real and immediate impact on individual plan participants, current and future.
 
This month's Know How provides a brief account of some of the major impacts of the PPA from the standpoint of your participants. Many of these take effect this year, some not until next year.
 
Previous Know Hows have dealt with the topics of increased contribution limits under EGTRRA, as well as the Roth 401(k), automatic enrollment, and lifestyle funds, which are rapidly emerging as a preferential default investment option. Depending on your current and potential plan designs, you may want to consider making some of these other information pieces available at this time.
 
As always, I appreciate your feedback and look forward to hearing from you regarding future topics.
  
—Nevin Adams

PLANSPONSOR staff
editors@plansponsor.com

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