The broad sweep of the Pension Protection Act of 2006 (PPA 2006) leaves few elements of employer-sponsored retirement benefits untouched. Milliman translates the complexities of the 900 pages of legislation into meaningful business options for its clients. Although ensuring our clients' compliance is vital, we also proactively consult on the implications of the legislation—a strategy that protects their business in the future.
Defined benefit funding: new tools for new requirements
PPA 2006's major overhaul of defined benefit funding rules places greater burdens on companies and increases their need for models and forecasting that provide strong analysis of liabilities. Milliman experts use cutting-edge actuarial computer modeling and in-depth understanding of PPA 2006 when working with clients to discover the best choice for their pension funding among traditional options and new alternatives.
Modeling enables clients to work through numerous scenarios to understand the future implications of any of their choices on funding defined benefit plans. We show our clients the full range of options and outline the pros and cons of each, so that they can determine the strategy that best fits their business.
Defined contribution plans: putting savings on autopilot
PPA 2006 has erased many of the questions around automatic benefit plan enrollment. Milliman offers our clients new opportunities to streamline and simplify 401(k) and 403(b) plans and promote retirement savings among employees. Our automatic enrollment plans boost employee savings and help prevent the inertia that can hinder them from making the most of their benefits. Milliman's Smart Tomorrow™ package combines customizable Web portals, where employees can review and change their benefits choices, with automatic savings plans to increase employee saving.
Extensive change requires careful review
In addition to making major changes to defined benefit and defined contribution plans, PPA 2006 also creates requirements under certain conditions for safe harbors for participant investing advice, employee statements, contribution limits, disclosures and faster vesting of nonmatching employer contributions. Milliman works with all kinds of organizations to carefully check that their plans are compliant and ensure that they take advantage of every opportunity that PPA 2006 offers.