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Impending Deadline for Adoption of PPA Amendments for Qualified Retirement Plans

November 9, 2009

The Pension Protection Act of 2006 ("PPA") requires that qualified retirement plans be amended to incorporate certain provisions no later than the last day of the plan year beginning on or after January 1, 2009 (for governmental plans, the deadline is 2011). For calendar year non-governmental plans, the deadline for adopting the PPA amendments is December 31, 2009.

The following is a list of some of these new PPA amendments that may have to be adopted by this deadline, depending on the qualified plan:

  • Amendment relating to the creation of the qualified optional survivor annuity benefit
  • Amendment relating to distributions to participants who have obtained age 62 but have not separated from employment
  • Amendment relating to gap period earnings and the distribution of excess deferrals
  • Amendment relating to the applicable interest rate and mortality table to be used in the determination of present value of lump sum distributions
  • Amendment relating to funding-based limits on benefits and benefit accruals

Each qualified plan must be reviewed to determine the extent that any required or discretionary PPA amendments must be included in the plan. Due to the quickly-approaching December 31, 2009 deadline, plan sponsors should act quickly to ensure that they will timely adopt the PPA amendments.