What was the primary focus of the Pension Protection Act (PPA) passed in 2006?

The primary focus of the Pension Protection Act (PPA), enacted in 2006, was to strengthen regulations on pension fund administration. The PPA aimed to address various issues within the retirement benefits realm, particularly regarding defined benefit plans and the funding of pension plans. It introduced provisions that improved transparency and increased the accountability of pension plan sponsors. Key measures included requiring more rigorous funding levels for pension plans and reinforcing the need for employers to properly manage their pension obligations.

Additionally, the PPA also encouraged the adoption of automatic enrollment features in 401(k) plans, ultimately promoting better employee participation in retirement savings. By bolstering regulatory oversight, the act sought to enhance the security of retirement benefits for workers, responding to the underfunding and mismanagement issues that had arisen in the pension landscape prior to its enactment. Overall, these regulatory enhancements were vital in ensuring the long-term viability of retirement plans and protecting the interests of plan participants.