The Pension Protection Act Turns 20 and Future Directions

This document is a report discussing the Pension Protection Act (PPA) as it reaches its 20th anniversary. The PPA, enacted in 2006, aimed to address a pension funding crisis by enhancing defined contribution (DC) plans, which have become crucial for retirement security. The report outlines the achievements of the PPA, such as increased participation rates in DC plans and significant growth in plan assets. It notes that while DC plan access has improved, gaps remain, particularly in coverage and post-retirement solutions. The report highlights innovations introduced by the PPA, including auto-enrollment and target date funds, which have contributed to higher savings rates. However, it also identifies ongoing challenges such as plan leakage and the need for better post-retirement strategies. The document concludes by discussing the potential impact of recent legislation, including the SECURE Acts, on future innovations in DC plans and the importance of addressing inflation risks for participants.