The Pension Protection Act of 2006
The Pension Protection Act of 2006 (PPA) contains several significant provisions that affect retirement savings plans. The following resources provide detailed PPA information, including the full text of the PPA legislation, a summary of the provisions impacting governmental plans, and more.
Qualified Default Investment Alternatives
The Department of Labor (DOL) issued final regulations related to Qualified Default Investment Alternatives (QDIAs) on October 24, 2007. The Final QDIA Regulations designate target retirement date funds, managed accounts and balanced funds as qualified default investment alternatives. Stable-value funds are given only short-term (120 days) QDIA status.
- Technical Corrections to October Regulations on QDIA for ERISA Plans
- Field Assistance Bulletin No. 2008-03
- Final QDIA Regulations
- Additional information on the QDIA Regulations
- Read about ICMA-RC’s plans for changing its standard plan default investment option
Background on the Pension Protection Act of 2006
- Full text of the Pension Protection Act of 2006
- ICMA-RC's Summary of PPA provisions impacting governmental plans
Permanency for Existing Provisions
New Optional Provisions
- Tax-free withdrawals of up to $3,000 annually for the purchase of qualified insurance premiums by eligible retired public safety officers.
- Non-spouse beneficiaries can now rollover funds to an Inherited IRA.
- Emergency/Hardship withdrawals can now be taken in certain circumstances related to a participant’s beneficiary.
- Qualified reservist distributions (401(k) plans only).