Publications

PPA’s Comprehensive Changes for 401(k) Plans

Fall 2006
Susan E. Bernstein | Mark E. Brossman | David M. Cohen | Laurence M. Moss | Ronald E. Richman | Holly H. Weiss
Employment & Employee Benefits Developments - Fall 2006

The PPA introduces new rules for 401(k) plans and other defined contribution plans, generally making it easier for employers to enroll employees in such plans automatically. The new legislation encourages employers to make more diverse default investment elections on behalf of participants. Qualified “investment advisors” will now be allowed to provide investment advice to plan participants if certain requirements are met. The PPA accelerates vesting of employer profit sharing and other nonelective contributions and requires greater diversification of plans that hold publicly traded employer securities.