The New Defined Benefit/401(k): Two Plans Become One.

The article discusses the U.S. Pension Protection Act of 2006 (PPA 2006) and its impact on the 401(k) benefit plan. The author states that PPA 2006 created a new plan design that combines the security of a traditional pension with the market potential of an investment-based account. The design, which becomes available in 2010, may make it easier for companies that already have a 401(k) plan to add a defined-benefit component. The article describes the features of the defined-benefit plan including contribution requirements, eligible employers, investments, and other requirements. The market for the new plans includes small businesses with up to 500 employees. An advantage will be more predictable funding.