Pension Protection Act of 2006
Summary of Key Provisions
___________________________________________________________________
The AICPA Employee Benefit Plan Audit Quality Center has prepared this summary of
the Pension Protection Act of 2006 to assist members in obtaining a general
understanding of key provisions in the Act relating to financial, reporting and other
matters that are highlighted in this summary This document was prepared from
information included in the Joint Committee on Taxation, Technical Explanation of
H.R. 4, the “Pension Protection Act of 2006,” as Passed by the House on July 28,
2006, and as Considered by the Senate on August 3, 2006 (JCX-38-06), August 3,
2006.
___________________________________________________________________
TITLE I: REFORM OF FUNDING RULES FOR SINGLE-EMPLOYER DEFINED
BENEFIT PENSION PLANS
Subtitle A--Amendments to Employee Retirement Income Security Act of
1974
Sec. 101. Minimum funding standards
Replaces the existing rules related to the funding of single-employer defined benefit
pension plans with a new minimum funding standard, which is satisfied if
contributions to the plan equal at least the calculated minimum funding required.
Also stipulates who is liable for contributions to the plan, allows for fund waivers in
case of company hardship, and stipulates the requirements and process for
requesting funding waivers.
Sec. 102. Funding rules for single-employer defined benefit pension plans
Describes the funding standards and minimum required contribution for a plan year.
Includes new rules on measuring the benefit obligation and plan assets, use of
interest rate assumptions, mortality tables, valuation date, credit balances for
carryover and pre-funded balances. Establishes special rules for “at-risk” plans.
For plan years beginning after December 31, 2005, and before January 1, 2008, the
provision applies the present-law funding rules. For plan years beginning after
December 31, 2007, the provision repeals the present-law funding rules for singleemployer defined benefit pension plans (including the requirement that a funding
standard account be maintained) and provides a new set of rules for determining
minimum required contributions. The minimum required contribution to a singleemployer defined benefit pension plan for a plan year generally depends on a
comparison of the value of the plan’s assets with the plan’s funding target and target
normal cost. A plan’s funding target is the present value of all benefits accrued or
earned as of the beginning of the plan year. A plan’s target normal cost for a plan
year is the present value of benefits expected to accrue or be earned during the plan
year.
Sec. 103. Benefit limitations under single-employer plans
Certain plan amendments may not take effect during a plan year if the plan’s
adjusted funding target attainment percentage for the plan year: (1) is less than 80
percent; or (2) would be less than 80 percent taking into account the amendment.
Sec. 104. Special rules for multiple employer plans of certain cooperatives
Sec. 105. Temporary relief for certain PBGC settlement plans
Sec. 106. Special rules for plans of certain government contractors
Sec. 107. Technical and conforming amendments
Subtitle B--Amendments to Internal Revenue Code of 1986 (Conforms the
funding rules of the IRC)
Sec. 111. Minimum funding standards
Sec. 112. Funding rules for single-employer defined benefit pension plans.
Sec. 113. Benefit limitations under single-employer plans
Sec. 114. Technical and conforming amendments
Sec. 115. Modification of transition rule to pension funding requirements
Sec. 116. Restrictions on funding of nonqualified deferred compensation
plans by employers maintaining underfunded or terminated single-employer
plans
TITLE II--FUNDING RULES FOR MULTIEMPLOYER DEFINED BENEFIT PLANS
AND RELATED PROVISIONS
Subtitle A--Amendments to Employee Retirement Income Security Act of
1974
Sec. 201. Funding rules for multiemployer defined benefit plans
Establishes the required minimum funding rules for multiemployer defined benefit
plans. Specifies how and as of what date to value plan assets, including interest rate
and mortality table to be used, and defines a fully funded plan.
Modifies the amortization periods applicable to multiemployer plans so that the
amortization period for most charges is 15 years. Under the provision, past service
liability under the plan is amortized over 15 years (rather than 30); past service
liability due to plan amendments is amortized over 15 years (rather than 30); and
experience gains and losses resulting from a change in actuarial assumptions are
2
amortized over 15 years (rather than 30). Eliminates the alternative funding
standard account.
Provides that in applying the funding rules, all costs, liabilities, interest rates, and
other factors are required to be determined on the basis of actuarial assumptions
and methods, each of which is reasonable (taking into account the experience of the
plan and reasonable expectations). The assumptions are required to offer the
actuary’s best estimate of anticipated experience under the plan.
Sec. 202. Additional funding rules for multiemployer plans in endangered or
critical status
Provides additional funding rules for multiemployer defined benefit plans in effect on
July 16, 2006, that are in “endangered” or “critical” status. Requires the adoption of
and compliance with a “funding improvement plan” in the case of a multiemployer
plan in endangered status, and a “rehabilitation plan” in the case of a multiemployer
plan in critical status.
The plan actuary must certify not later than the 90th day of each plan year to the
Secretary of the Treasury and to the plan sponsor whether or not the plan is in
endangered or critical status for the plan year. In the case of a plan that is in a
funding improvement or rehabilitation period, the actuary must certify whether or
not the plan is making scheduled progress in meeting the requirements of its funding
improvement or rehabilitation plan. Failure of the plan’s actuary to certify
the status of the plan is treated as a failure to file the annual report.
Sec. 203. Measures to forestall insolvency of multiemployer plans
Modifies the requirements for anticipating future insolvencies of plans in
reorganization status. Unless the plan sponsor determines that the value of plan
assets exceeds three times the total amount of benefit payments, the plan sponsor
must determine whether the plan will be insolvent for any of the next five plan years,
rather than three plan years as under present law.
Sec. 204. Withdrawal liability reforms
Prescribes a new table under ERISA section 4225(a)(2) to be used in determining the
portion of the liquidation or dissolution value of the employer for the calculation of
the limitation of unfunded vested benefits allocable to an employer in the case of a
bona fide sale of all or substantially all of the employer’s assets in an arm’s length
transaction to an unrelated party.
A partial withdrawal also occurs if the employer permanently ceases to have an
obligation to contribute under one or more, but fewer than all collective bargaining
agreements under which obligated to contribute, but the employer transfers such
work to an entity or entities owned or controlled by the employer.
Sec. 205. Prohibition on retaliation against employers exercising their rights
to petition the Federal Government
3
Sec. 206. Special rule for certain benefits funded under an agreement
approved by the Pension Benefit Guaranty Corporation
Subtitle B--Amendments to Internal Revenue Code of 1986 (Conforms the
funding rules of the IRC )
Sec. 211. Funding rules for multiemployer defined benefit plans
Sec. 212. Additional funding rules for multiemployer plans in endangered or
critical status
Sec. 213. Measures to forestall insolvency of multiemployer plans
Sec. 214. Exemption from excise taxes for certain multiemployer pension
plans
Subtitle C--Sunset of Additional Funding Rules
TITLE III--INTEREST RATE ASSUMPTIONS
Sec. 301. Extension of replacement of 30-year Treasury rates
Notes that the replacement of the 30-year Treasury rate has been extended for
certain purposes. Provisions relating to extension of the replacement of the 30-year
Treasury rate for purposes of single-employer funding rules are included under Title I
of the Act. The provision relating to extension of the replacement of the 30-year
Treasury rate for PBGC premium purposes is included under Title IV of the Act.
Sec. 302. Interest rate assumption for determination of lump sum
distributions
Changes the interest rate and mortality table used in calculating the minimum value
of certain optional forms of benefits, such as lump sums.
Sec. 303. Interest rate assumption for applying benefit limitations to lump
sum distributions
TITLE IV--PBGC GUARANTEE AND RELATED PROVISIONS
Sec. 401. PBGC premiums
Establishes the basis of the variable-rate premium calculation. For 2006 and 2007,
the bill extends the present-law rule in determining the amount of unfunded vested
benefits for variable rate premium purposes. Beginning in 2008, the determination
of unfunded vested benefits for purposes of the variable rate premium is modified to
reflect the changes to the funding rules of the provision.
Makes permanent the termination premium enacted in the Deficit Reduction Act
of 2005.
4
Sec. 402. Special funding rules for certain plans maintained by commercial
airlines
Sec. 403. Limitation on PBGC guarantee of shutdown and other benefits
Sec. 404. Rules relating to bankruptcy of employer
Sec. 405. PBGC premiums for small plans
In the case of a plan of a small employer, the per participant variable-rate premium
is no more than $5 multiplied by the number of plan participants in the plan at the
end of the preceding plan year. For purposes of the provision, a small employer is a
contributing sponsor that, on the first day of the plan year, has 25 or fewer
employees.
Sec. 406. Authorization for PBGC to pay interest on premium overpayment
refunds
Sec. 407. Rules for substantial owner benefits in terminated plans
Sec. 408. Acceleration of PBGC computation of benefits attributable to
recoveries from employers
Sec. 409. Treatment of certain plans where cessation or change in
membership of a controlled group
Sec. 410. Missing participants
Requires PBGC to prescribe rules for terminating multiemployer plans similar to the
present-law missing participant rules applicable to terminating single employer plans
that are subject to Title IV of ERISA.
Sec. 411. Director of the Pension Benefit Guaranty Corporation
Sec. 412. Inclusion of information in the PBGC annual report
TITLE V--DISCLOSURE
Sec. 501. Defined benefit plan funding notice
Expands the annual funding notice requirement that applies under present law to
multiemployer plans, so that it applies also to single-employer plans and, in the case
of a single-employer plan, includes a summary of the PBGC rules governing plan
termination. Specifies the requirements for an annual plan funding notice. Stipulates
the contents of the notice, to whom the notice must be sent, the form and manner of
communication, and the time when the notice must be provided.
Sec. 502. Access to multiemployer pension plan information
Requires plan administrators, within 30 days of a written request, to provide certain
specified information to a plan participant or beneficiary, employee organization, or
employer who has an obligation to contribute to a plan. Specifies the information
regarding withdrawal liabilities that must be provided, within 180 days of a written
request, to any employer having an obligation to contribute to the plan.
5
Sec. 503. Additional annual reporting requirements.
Requires that the annual report (i.e. - Form 5500) of a defined benefit pension plan
in which the liabilities under the plan as of the end of a plan year consist (in whole or
in part) of liabilities under two or more other pension plans as of immediately before
the plan year include the plan’s funded percentage as of the last day of the plan year
and the funded percentage of each of such other plans.
Specifies additional information required for multiemployer plans. An annual report
filed with respect to a multiemployer plan must include, as of the end of the plan
year, additional information related to the number of employers obligated to
contribute to the plan, the employers that contributed more than five percent of the
total contributions to the plan, the number of participants on whose behalf no
contributions were made by an employer as an employer of the participant, whether
the plan received an amortization extension for the plan year, whether the plan used
the shortfall funding method, whether the plan was in critical or endangered status,
the number of employers that withdrew from the plan during the preceding plan
year, the aggregate amount of withdrawal liability assessed, and certain other
information.
Sec. 504. Electronic display of annual report information
Identification and basic plan information and actuarial information included in the
plan’s annual report (i.e. - Form 5500) must be filed with the DOL in an electronic
format that accommodates display on the Internet. The DOL is to provide for the
display of such information, within 90 days after the filing of the annual report, on a
website maintained by the DOL.
Identification and basic plan information and actuarial information included in the
plan’s annual report (Form 5500) is required to be displayed on any Intranet website
maintained by the plan sponsor (or by the plan administrator on behalf of the plan
sponsor) in accordance with DOL regulations.
Sec. 505. Section 4010 filings with the PBGC
The requirement of section 4010 reporting applicable under present law if aggregate
unfunded vested benefits exceed $50 million is replaced with a requirement of
section 4010 reporting if the funding target attainment percentage at the end of the
preceding plan year of a plan maintained by a contributing sponsor or any member
of its controlled group is less than 80 percent.
Sec. 506. Disclosure of termination information to plan participants
Revises the rules applicable in the case of a distress termination to require a plan
administrator to provide an affected party with any information provided to the PBGC
in connection with the proposed plan termination.
Sec. 507. Notice of freedom to divest employer securities
Requires a notice when an applicable individual is eligible to exercise the right to
divest his or her account under an applicable defined contribution plan of employer
securities.
6
Sec. 508. Periodic pension benefit statements
Revises the benefit statement requirements under ERISA. The new requirements
depend in part on the type of plan and the individual to whom the statement is
provided, and include information provided and frequency of statements sent to
participants by plan type.
The administrator of a defined contribution plan is required to provide a benefit
statement to a participant or beneficiary who has the right to direct the investment
of the assets in his or her account, at least quarterly, to any other participant or
other beneficiary who has his or her own account under the plan, at least annually,
and to other beneficiaries, upon written request, but limited to one request during
any 12-month period.
The administrator of a defined benefit plan is required either to furnish a benefit
statement at least once every three years to each participant who has a vested
accrued benefit under the plan and who is employed by the employer at the time the
benefit statements are furnished to participants; or to furnish at least annually to
each such participant notice of the availability of a benefit statement and the manner
in which the participant can obtain it. The administrator of a defined benefit pension
plan is also required to furnish a benefit statement to a participant or beneficiary
upon written request, limited to one request during any 12–month period.
Sec. 509. Notice to participants or beneficiaries of blackout periods
TITLE VI--INVESTMENT
FIDUCIARY RULES
ADVICE,
PROHIBITED
TRANSACTIONS,
AND
Subtitle A--Investment Advice
Sec. 601. Prohibited transaction exemption for provision of investment
advice
Adds a new category of prohibited transaction exemption under ERISA and the Code
in connection with the provision of investment advice through an “eligible investment
advice arrangement” to participants and beneficiaries of a defined contribution plan
who direct the investment of their accounts under the plan and to beneficiaries of
IRAs. If the requirements are met, the following are exempt from prohibited
transaction treatment: (1) the provision of investment advice; (2) an investment
transaction (i.e., a sale, acquisition, or holding of a security or other property)
pursuant to the advice; and (3) the direct or indirect receipt of fees or other
compensation in connection with the provision of the advice or an investment
transaction pursuant to the advice. The prohibited transaction exemptions provided
under the provision do not alter existing individual or class exemptions provided by
statute or administrative action.
Defines an “eligible investment advice arrangement” as an arrangement that meets
certain requirements and either provides that any fees received by the fiduciary
adviser for investment advice or with respect to an investment transaction with
respect to plan assets do not vary depending on the basis of any investment option
7
selected, or uses a certified computer model in connection with the provision of
investment advice given.
In the case of an eligible investment advice arrangement with respect to a defined
contribution plan, requires an annual independent audit of the arrangement for
compliance with applicable requirements. The auditor must issue a report of the
audit results to the fiduciary that authorized use of the arrangement. In the case of
an eligible investment advice arrangement with respect to IRAs, an audit is required
at such times and in such manner as prescribed by the Secretary of Labor.
Directs the Secretary of Labor, in consultation with the Secretary of the Treasury, to
determine, based on certain information to be solicited by the Secretary of Labor,
whether there is any computer model investment advice program that meets the
requirements of the provision and may be used by IRAs.
Does not exempt the employer or a plan fiduciary from fiduciary responsibility under
ERISA for the prudent selection and periodic review of a fiduciary adviser with whom
the employer or plan fiduciary has arranged for the provision of investment advice.
Subtitle B--Prohibited Transactions
Sec. 611. Prohibited transaction rules relating to financial investments
Provides prohibited transaction exemptions under ERISA and the Code for
a purchase or sale of securities or other property (as determined by the Secretary of
Labor) between a plan and a disqualified person (other than a fiduciary) involving a
block trade if certain conditions are met.
Sec. 612. Correction period for certain transactions involving securities and
commodities
Subtitle C--Fiduciary and Other Rules
Sec. 621. Inapplicability of relief from fiduciary liability during suspension
of ability of participant or beneficiary to direct investments
Sec. 622. Increase in maximum bond amount
Increases the maximum bond amount for plans which hold employer securities to
$1,000,000.
Sec. 623. Increase in penalties for coercive interference with exercise of
ERISA rights
Sec. 624. Treatment of investment of assets by plan where participant fails
to exercise investment election
In general, a participant in an individual account plan meeting the notice
requirements shall be treated as exercising control over the assets in the account
with respect to the amount of contributions and earnings which, in the absence of an
investment election by the participant, are invested by the plan in accordance with
regulations prescribed by the Secretary.
8
Sec. 625. Clarification of fiduciary rules
TITLE VII--BENEFIT ACCRUAL STANDARDS
Sec. 701. Benefit accrual standards
In general, a plan is not treated as violating the prohibition on age discrimination
under ERISA, the Code, and ADEA if a participant's accrued benefit, as determined
as of any date under the terms of the plan, would be equal to or greater than that of
any similarly situated, younger individual who is or could be a participant. Provides
various rules for specific defined benefit plans, including conditions under which
plans would not be treated as failing to meet the age discrimination requirements,
special rules for conversions due to plan amendments adopted after June 29, 2005,
and rules for making a determination of benefits upon plan termination for applicable
defined benefit plans.
Sec. 702. Regulations relating to mergers and acquisitions
Requires the Secretary of the Treasury to prescribe regulations for the application of
the amendments made by, and the provisions of, this title in cases where the
conversion of a plan to an applicable defined benefit plan is made with respect to a
group of employees who become employees by reason of a merger, acquisition, or
similar transaction.
TITLE VIII--PENSION RELATED REVENUE PROVISIONS
Subtitle A--Deduction Limitations
Sec. 801. Increase in deduction limit for single-employer plans
Revises the maximum deductible amount for employer contributions under the
Internal Revenue Code. Specifies formulas for calculating maximum deductible
employer contributions for single-employer defined benefit pension plans. For
taxable years beginning in 2006 and 2007, the maximum deductible amount is not
less than the excess (if any) of 150 percent of the plan’s current liability, over the
value of plan assets. For taxable years beginning after 2007, the maximum
deductible amount is equal to the greater of the excess (if any) of the sum of the
plan’s funding target, the plan’s target normal cost, and a cushion amount, as
defined, for a plan year, over the value of plan assets (as determined under the
minimum funding rules); and the minimum required contribution for the plan year.
Sec. 802. Deduction limits for multiemployer plans
Revises the maximum deductible amount for employer contributions under the
Internal Revenue Code for multiemployer plans. For taxable years beginning after
2005, the maximum amount deductible for any taxable year shall not be less than
the excess (if any) of 140% of the current liability of the plan over the value of the
plan assets.
Sec. 803. Updating deduction rules for combination of plans
Subtitle B--Certain Pension Provisions Made Permanent
9
Sec. 811. Pensions and individual retirement arrangement provisions of
Economic Growth and Tax Relief Reconciliation Act of 2001 made permanent
Repeals the sunset provision of the Economic Growth and Tax Relief Reconciliation
Act of 2001 (EGTRRA) that raised the annual contribution limit for IRAs and other
retirement accounts, provided for Roth 401(k) and 403(b) features, and simplified
plan portability, plan design and administration (provisions were due to expires in
2010).
Sec. 812. Saver’s Credit
Makes permanent the Saver’s Credit under IRC section 25B. Also provides that an
individual may direct that the amount of any refund attributable to the saver’s credit
be directly deposited by the Federal government into an applicable retirement plan,
meaning an IRA, qualified retirement plan, section 403(b) annuity, or governmental
section 457 plan designated by the individual (if the plan or other arrangement
agrees to accept such direct deposits).
Subtitle C--Improvements in Portability, Distribution and Contribution Rules
Sec. 821. Clarifications regarding purchase of permissive service credit
Sec. 822. Allow rollover of after-tax amounts in annuity contracts
Sec. 823. Clarification of minimum distribution rules for governmental plans
Sec. 824. Allow direct rollovers from retirement plans to Roth IRAs
Sec. 825. Eligibility for participation in retirement plans
Sec. 826. Modifications of rules governing hardships and unforseen financial
emergencies
Sec. 827. Penalty-free withdrawals from retirement plans for individuals
called to active duty for at least 179 days
Sec. 828. Waiver of 10 percent early withdrawal penalty tax on certain
distributions of pension plans for public safety employees
Sec. 829. Allow rollovers by nonspouse beneficiaries of certain retirement
plan distributions
Sec. 830. Direct payment of tax refunds to individual retirement plans
Sec. 831. Allowance of additional IRA payments in certain bankruptcy cases
Sec. 832. Determination of average compensation for section 415 limits
Sec. 833. Inflation indexing
retirement savings incentives
of
gross
10
income
limitations
on
certain
Subtitle D--Health and Medical Benefits
Sec. 841. Use of excess pension assets for future retiree health benefits and
collectively bargained retiree health benefits
If certain requirements are satisfied, permits transfers of excess pension assets
under a single-employer plan to retiree medical accounts to fund the expected cost
of retiree medical benefits for the current and future years.
Sec. 842. Transfer of excess pension assets to multiemployer health plans
Qualified future transfers and collectively bargained transfers can be made to the
extent that plan assets exceed the greater of the accrued liability, or 120 percent of
the current liability.
Sec. 843. Allowance of reserve for medical benefits of plans sponsored by
bona fide associations
Sec. 844. Treatment of annuity and life insurance contracts with a long-term
care insurance feature
Sec. 845. Distributions from governmental retirement plans for health and
long-term care insurance for public safety officers
Subtitle E--United States Tax Court Modernization
Sec. 851.
annuities.
Cost-of-living
adjustments
for
Tax
Court
judicial
survivor
Sec. 852. Cost of life insurance coverage for Tax Court judges age 65 or
over.
Sec. 853. Participation of Tax Court judges in the Thrift Savings Plan.
Sec. 854. Annuities to surviving spouses and dependent children of special
trial judges of the Tax Court
Sec. 855. Jurisdiction of Tax Court over collection due process cases.
Sec. 856. Provisions for recall.
Sec. 857. Authority for special trial judges to hear and decide certain
employment status cases.
Sec. 858. Confirmation of authority of Tax Court to apply doctrine of
equitable equipment.
Sec. 859. Tax Court filing fee in all cases commenced by filing petition.
Sec. 860. Expanded use of Tax Court practice fee for pro se taxpayers.
11
Subtitle F--Other Provisions
Sec. 861. Extension to all governmental plans of current moratorium on
application of certain nondiscrimination rules applicable to State and local
plans
Sec. 862. Elimination of aggregate limit for usage of excess funds from
black lung disability trusts
Sec. 863. Treatment of death benefits from corporate-owned life insurance
Sec. 864. Treatment of test room supervisors and proctors who assist in the
administration of college entrance and placement exams
Sec. 865. Grandfather rule for church plans which self-annuitize
Sec. 866. Exemption for income from leveraged real estate held by church
plans
Sec. 867. Church plan rule
Sec. 868. Gratuitous transfer for benefits of employees
TITLE IX--INCREASE IN PENSION PLAN DIVERSIFICATION AND
PARTICIPATION AND OTHER PENSION PROVISIONS
Sec. 901. Defined contribution plans required to provide employees with
freedom to invest their plan assets
Requires certain defined contribution plans to provide diversification rights with
respect to amounts invested in employer securities in order to satisfy the plan
qualification requirements of the Code and the vesting requirements of ERISA.
States what types of plans are applicable and the specific investment rules to which
they must adhere. Certain ESOPs are exempted from this requirement.
Sec. 902. Increasing participation through automatic contribution
arrangements
States that a 401(k) plan that contains an automatic enrollment feature that satisfies
certain requirements (a “qualified automatic enrollment feature”) is treated as
meeting the ADP test with respect to elective deferrals and the ACP test with respect
to matching contributions. In addition, a plan consisting solely of contributions made
pursuant to a qualified automatic enrollment feature is not subject to the top-heavy
rules. Establishes rules in regards to the allowable automatic deferral contribution,
matching or nonelective contribution required, vesting, required participant notice,
corrective distributions and excess contributions under these plans.
Sec. 903. Treatment of eligible combined defined benefit plans and qualified
cash or deferred arrangements
Provides rules for an “eligible combined plan.” An eligible combined plan is a plan
that is maintained by an employer that is a small employer at the time the plan is
established; consists of a defined benefit plan and an “applicable” defined
contribution plan; the assets of which are held in a single trust forming part of the
12
plan and are clearly identified and allocated to the defined benefit plan and the
applicable defined contribution plan to the extent necessary for the separate
application of the Code and ERISA; and that meets certain benefit, contribution,
vesting and non discrimination requirements. A small employer is defined as an
employer that employed an average of at least two, but not more than 500,
employees on business days during the preceding calendar year and at least two
employees on the first day of the plan year.
Sec. 904. Faster vesting of employer nonelective contributions
Applies the present-law vesting schedule for matching contributions to all employer
contributions to defined contribution plans.
Sec. 905. Distributions during working retirement
Sec. 906. Treatment of certain pension plans of Indian tribal governments
TITLE X--PROVISIONS RELATING TO SPOUSAL PENSION PROTECTION
Sec. 1001. Regulations on time and order of issuance of domestic relations
orders.
Sec. 1002. Entitlement of divorced spouses to railroad retirement annuities
independent of actual entitlement of employee.
Sec. 1003. Extension of tier II railroad retirement benefits to surviving
former spouses pursuant to divorce agreements.
Sec. 1004. Requirement for additional survivor annuity option.
TITLE XI--ADMINISTRATIVE PROVISIONS
Sec. 1101. Employee plans compliance resolution system
Sec. 1102. Notice and consent period regarding distributions
Sec. 1103. Reporting simplification
The Secretary of the Treasury is directed to modify the annual return filing
requirements with respect to a one-participant plan to provide that if the total value
of the plan assets of such a plan as of the end of the plan year does not exceed
$250,000, the plan administrator is not required to file a return.
–
The Secretary of the Treasury and the Secretary of Labor are directed to provide
simplified reporting requirements for plan years beginning after December 31, 2006,
for certain plans with fewer than 25 participants
Sec. 1104. Voluntary early retirement incentive and employment retention
plans maintained by local educational agencies and other entities
13
Sec. 1105. No reduction in unemployment compensation as a result of
pension rollovers
Sec. 1106. Revocation of election relating to treatment as multiemployer
plan
Sec. 1107. Provisions relating to plan amendments
TITLE XII—PROVISIONS RELATING TO EXEMPT ORGANIZATIONS
TITLE XIII—OTHER PROVISIONS
TITLE XIV—TARIFF PROVISIONS
Disclaimer: Although the information included in the document may concern legal
issues, it is not legal, accounting, or other professional advice. We make no
warranty or guarantee of the accuracy or reliability of the information. We assume
no responsibility or liability of any kind for any information contained herein, and we
expressly disclaim all liability for any claim for damages arising from the use,
reference to, or reliance on, such information. If legal or other expert assistance is
required, the services of a competent professional should be sought.
For more information about the AICPA Employee Benefit Plan Audit Quality Center,
visit the Center’s website at http://www.aicpa.org/ebpaqc.
Copyright © 2006 by the American Institute of Certified Public Accountants, Inc.,
New York, New York.
14