Employee Benefits Report - Defined Benefit Funding Changes

This Employee Benefits Report is the fifth of a series being issued regarding the Pension Protection Act of 2006. This Report summarizes the new funding rules the Act provides for single and multiemployer defined benefit plans.

The Act significantly modifies the minimum funding requirements for defined benefit plans under the Employee Retirement Income Security Act of 1974 ("ERISA") and the Internal Revenue Code (the "Code"), imposes limitations and additional funding requirements on plans that are considered "at risk" or "endangered", and expands the plan sponsor’s obligation to notify plan participants and beneficiaries of the plan’s funded status. Most provisions of the Act are effective for plan years beginning after December 31, 2007.