President Bush has signed the Pension Protection Act of 2006 into law, saying the law will help shore up the pension insurance system. Among other things, the Pension Protection Act requires that employers fully fund pensions and gives companies seven years to fund shortfalls. In addition to amending the funding rules for defined-benefit pension plans, the legislation makes changes that would encourage more employers to use automatic enrollment in 401(k) plans. The Pension Protection Act extends the requirement that companies that terminate their pensions must provide extra funding for the system. This legislation insists that companies measure their obligations of their pension plans more accurately. The pension protection act also closes loopholes that allow under-funded plans to skip pension payments. In addition, the Pension Protection Act raises caps on the amount that employers can put into their pension plans so they can add more money during good times and build up a cushion that can keep pensions solvent in lean times. Finally, this legislation prevents companies with under funded pension plans from digging the hole deeper by promising extra benefits to their workers without paying for those promises up front. Find out More about the Pension Protection Act HR.BLR.com is the most complete source for practical human resources advice and plain-English compliance analysis available anywhere. No matter what the HR topic - from termination to Pension Protection Act - you’ll find hands-on help you can count on. As the laws in different states on Human Resources get more complex, keeping current can spell the difference between success and disaster for your business. The HR.BLR.com editorial staff monitors a host of private and government sources to keep you up-to-date on all the important human resource developments. The HR Library has more helpful Pension Protection resources like these: Welfare and Pension Reports Pension Protection Act Regulatory Analysis Pension Agency’s Deficit Drops