“Pension Protection Act of 2006: Congress Makes it Easier to Satisfy the ERISA Plan Assets Regulation 25% Limit and Provides Much Needed Relief From Certain of the Prohibited Transaction Rules Under ERISA and the Code”
On August 3, 2006, the Senate passed H.R. 4, the Pension Protection Act of 2006 (the “Act”), which provides significant relief from certain of the plan asset and prohibited transaction rules under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and the corresponding rules under the Internal Revenue Code of 1986, as amended (the “Code”). The Senate passed H.R. 4 without amendment by a vote of 93-5, after the House had passed H.R. 4 by a vote of 279-131 on July 28, 2006. President Bush must now sign the bill in order for it to become law.
This Stroock Special Bulletin provides an overview of the provisions of the Act relating to the plan assets regulation and certain of the prohibited transaction rules under ERISA and the Code.