AimPoint Pension
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Defined Benefit Combo Cash Balance Compliance Consultant Loren D. Stark Company (LDSCO)
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Bates & Company, Inc.
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Hall County Government
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Regional Vice President of Sales The Retirement Plan Company
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Compass
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Loan & Distribution Specialist AimPoint Pension
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Time to Move Away from the PPA Baseline
Lori Lucas, of Callan, via Defined Contribution Institutional Investment Association [DCIIA] [Opinion] May 18, 2014
"[T]he downside to the [Pension Protection Act of 2006 (PPA)] is what Harvard Professor Brigitte Madrian calls the Baseline PPA Effect. This terms relates specifically to the non-discrimination testing safe harbor requiring that plans implement auto features with a contribution rate of 3% of pay, and with contributions automatically escalating over time to 6% of pay. However, these requirements apply only if the plan seeks to qualify for the non-discrimination testing safe harbor -- which few plans do. So if they aren't seeking safe harbor, then why adhere to these defaults?"
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