Funding:
For the majority of our clients who utilize the more modern 401(k) retirement vehicle there is little change required by the law passed in August ’06.  The bill directly impacts the funding of more traditional pension plans.

Auto-Enrollment:
More widely applicable is the now approved legality of auto-enrolling employees in your 401(k) program.  Many employers are choosing to participate at a 1% level, which is low enough to minimize the impact on employee take home pay yet significant enough to encourage incremental participation, thereby yielding more favorable mandatory year-end testing.  (Note the law does require that all employees be allowed to opt-out of plan participation.)

Investment Counsel:
There is continued warning against investment advice offered by any members within an organization who have internal HR and/or Financial responsibilities.  Investment recommendations can only be offered by those who are legally registered to provide such counsel.

For further detail on the impact of the Pension Reform Bill on your business please call HRpartners toll-free at 1-877-201-7105 or email us at info@HRpartners.us.