Deloitte's new booklet "Securing the Future: Defined Benefit Plans and the Pension Protection Act of 2006" discusses both the regulation requirements as well as "numerous opportunities brought about by its reforms." "The new law is the most significant ...
Deloitte's new booklet "Securing the Future: Defined Benefit Plans and the Pension Protection Act of 2006" discusses both the regulation requirements as well as "numerous opportunities brought about by its reforms."
"The new law is the most significant piece of pension reform legislation that we have seen in recent years," explains Martha Priddy Patterson, co-author of the booklet and a director in Deloitte Consulting LLP's human capital service area.
"It completely revamps the statutory language governing the minimum funding requirements for single-employer defined benefit plans and modifies the minimum funding requirements for multi-employer plans. The changes are complex and will create many unique planning opportunities and challenges for employers as they work to realize the benefits of the new law," explains Patterson.
One issue of particular importance to plan sponsors (70% listed this as a top priority according to a recent pension funding study by Deloitte Consulting) is pension fund volatility.
Other key issues include changes to the Pension Benefit Guaranty Corporation's (PBGC) premiums and limits to the PBGC guarantee; restrictions on underfunded plans; and increased disclosure for retirement plans.
