More on the Pension Protection Act of 2006 . . .

From the Wall Street Journal: Bill to Aid 401(k) Investors Raises Bias ConcernThe Big Pension Bill: Is That All There Is? Also, from Reuters: US senators expect to solve airline pension dispute Finally, many thanks to the Pension & Benefits…

From the Wall Street Journal:

Also, from Reuters:

Finally, many thanks to the Pension & Benefits Weblogger for staying up most of the night to create this great effective date outline here (completed at 3:48 in the morning!) of the 907-page bill. See also this helpful commentary here on how the PPA will affect lump sum distributions. Excerpt:

Various provisions under the Pension Protection Act of 2006 (H.R. 4) affect the valuation and distribution of lump sum distribution of the value of a participant’s accrued benefits under a defined benefit pension plan. . .

. . . For a pension plan other than a hybrid pension plan, the amount of a lump sum distribution will be valued using the 3-segment yield curve introduced by PPA for pension funding. [PPA §302] For the lump sum valuation, the yield curve is based on the rates for the month before the distribution, rather than on the 24-month average used for the plan’s funding. Lump sum amounts should generally be lower under the new rates than under the pre-PPA determination, which is based on 30-year Treasury bond rates, with the largest cuts going to youngest employees. The new rates take effect during a 5-year transition period beginning in 2008.

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