The Pension Protection Act of 2006 will allow single employer plans to transfer more of their “excess” assets to pay for their retiree health insurance costs.
Employers maintaining single employer defined benefit plans have been permitted to transfer excess plan assets to pay for future retiree health benefits when the plan is overfunded by more than 125 percent.
The new law will allow plans to make transfers to their health plans when the plan is overfunded by more than 120 percent. The new law applies to any transfer made after August 17, 2006.
Read Section 841 of the Pension Protection Act of 2006 Public Law 109-280< Back