Alerts

Pension Protection Act of 2006 Changes 25% Plan Asset Rule

August 4, 2006

Yesterday, the Senate passed the Pension Protection Act of 2006. The Act makes sweeping changes to ERISA's prohibited transaction rules and significantly narrows the entities covered by those rules. The key change for investment funds is that the Act eliminates the counting of foreign pension plans, U.S. state and local government pension plans, and church plans when determining if the fund is subject to ERISA. These changes will be effective the day after President Bush signs the bill.