Tag: Pension Protection Act of 2006 (PPA)

Hand holding coins in birds nest.

The brief’s key findings are: While most multiemployer pension plans are finding their financial footing, a substantial minority face serious problems. The key reason is a declining financial base, which results in negative cash flow. Plans deemed in “critical” condition can raise contributions, cut future benefits, and/or cut “adjustable” benefits that apply to retirees as well as…

Hand holding coins in birds nest.

Abstract This paper estimates the short-run impact of the Pension Protection Act of 2006 (PPA2006) on holdings of employer stock in defined contribution pension plans. PPA2006 allowed participants in plans with employer stock to diversify their holdings. However, stand-alone ESOPs, i.e., those that do not allow employee elective deferrals or after-tax contributions, were exempt from…