Background

The Pension Protection Act of 2006 significantly alters the employer-sponsored retirement plan landscape by amending dozens of provisions of the Internal Revenue Code of 1986 (the “Code”) and the Employee Retirement Income Security Act of 1974 (“ERISA”).

The changes affecting 401(k) and other defined contribution plans are far-reaching and impact minimum vesting rules for employer non-elective contributions, impose diversification requirements on employer securities held by plans, provide investment-related guidance, encourage automatic 401(k) plan enrollment, and contain other requirements.

In short, the Pension Protection Act of 2006 has created a whole new list of notice and logistical requirements for defined contribution plans that HR professionals will be actively involved in implementing and overseeing.

Now is the time for weeding through the new requirements to see exactly how your plan administration will be affected. That's where we can help. AHI has teamed up with Martin Tierney, Esq., and Sharon F. Birnbaum, to present a 90-minute audio conference titled:

Mr. Tierney and Ms. Birnbaum highlight the most notable changes impacting defined contribution plans and outline the key actions that HR professionals, or anyone involved in administering these plans, need to take to comply with the new law. During this conference, you'll learn more about the Pension Protection Act's provisions regarding negative 401(k) options, investment advice, diversification requirements, default investments, vesting requirements, and plan distribution options.

This audio conference answers important questions like:

• What are the potential savings if your organization adopts a negative option 401(k)?
• What are the funding, vesting, and investment options if your organization uses a negative option 401(k)?
• How does HR help meet the new fiduciary requirements imposed by PPA 2006?
• What steps does HR need to take to comply with the new investment advice for plan participants under PPA 2006?
• What notices does HR have to send to plan participants in order to comply with the new diversification requirements of PPA 2006?
• What does HR need to know to be sure that the organization's plan adminstrator is meeting the diversification requirement deadlines?
• What must HR give to all new particpants in the plan in order to comply with the new default investment guidelines under PPA 2006?
• How do the new vesting requirements simplify 401(k) plan adminstration?
• What changes do you have to make to your plan to comply with the new hardship rules?
• How does PPA 2006 affect distributions to military reservists?

Who Should Listen In

• HR Professionals
• Benefits Managers
• Office Managers
• Business Owners
  

— Audio Conference Outline —

OVERVIEW OF THE LAW

• How changes to the Internal Revenue Code, ERISA, and other laws governing retirement, insurance, and health benefits affect defined contribution plans

NEW RULES FOR AUTOMATIC ENROLLMENT FOR 401(k) PLANS

• Overview of the new minimum contribution amounts requirements
• How you can use safe harbors to avoid ADP and ACP non-discrimination testing
• How new vesting requirements create incentive for employers to switch to these plans
• When early withdrawals are allowed
• What is required for default investments
• Explanations of notice requirements for employers

NEW RULES ON INVESTMENT ADVICE

• How ERISA rules are amended to encourage more advice for plan participants
• Details of two new prohibited transaction exemptions created
• What HR's role is in meeting fiduciary requirements for plan sponsors
• Requirements for disclosures that must be provided to plan participants
• How the new fiduciary rules affect who you choose to give advice to plan participants

EGTRRA SUNSET PROVISION ELIMINATION

• How this eases future retirement planning

Q&A Session With Our Experts

NEW RULES ON DEFAULT INVESTMENTS

• How the law affects default guidelines when participants don't make investment choices
• How fiduciary protection is extended if a plan follows new guidelines
• New notification requirements for plans to explain default investments

NEW DIVERSIFICATION REQUIREMENTS FOR EMPLOYER STOCK

• What type of stock this applies to
• Differences in timing based on type of contribution and length of service
• Transition rule for timing of diversification
• Investment option requirements
• Diversification notice requirements

NEW RULE ON FREQUENCY OF PARTICIPANT ACCOUNT STATEMENTS

• When quarterly statements are required
• New model benefits statement from DOL

NEW VESTING REQUIREMENTS FOR EMPLOYER CONTRIBUTIONS

• How administration of plans is now simplified
• How the new vesting schedule might lead to more employee lawsuits

CHANGES TO PLAN DISTRIBUTION OPTIONS

• How the hardship distribution rules have expanded
• When direct rollovers to Roth IRAs are permitted
• Change to timing of distribution notice requirements
• New guidelines for distribution to qualified reservists

NEW RULES ON BLACKOUT PERIODS AND MAPPING

• How fiduciary protection is clarified for these periods

Q&A Session With Our Experts

Featured Speaker:

Martin Tierney, Esq., is a a member of the Employment Relations Practice Group of the prestigious law firm of Michael Best & Friedrich LLP. Mr. Tierney practices in the areas of employee benefits law and taxation (primarily related to executive compensation and employee benefits). Mr. Tierney has experience in a wide range of issues, including qualified retirement plans (pension, profit sharing, 401(k)).

Also on the Expert Panel:

Sharon F. Birnbaum is Vice President of Feldman Benefit Services, Inc., a full service actuarial firm which designs, implements, and administers employee benefits programs and Outsource, Inc., a human resources consulting firm which assists employers in developing and maintaining standardized policies and procedures, flexible compensation programs, management training and development, performance evaluations, and employee relations. Ms. Birnbaum has over 20 years' experience in operations management, human resources consulting, and employee education and training, and has delivered numerous 401(k) and Section 125 Plan enrollment meetings throughout her tenure with Feldman Benefit Services, Inc.

This program has been approved for 1.5 recertification credit hours toward PHR, SPHR, and GPHR recertification through the Human Resource Certification Institute (HRCI). For more information about certification or recertification, please visit the HRCI homepage at www.hrci.org.