Devoted to Corporate Attorneys, Corporate Lawyers, and Corporate Counsel

A common practice of many plan sponsors prior to the Pension Protection Act of 2006 (PPA) was to require participants to remain invested in employer stock. Some plan sponsors required a holding period for a specified time interval in employer stock (for instance, a two-year holding period before trading).

The PPA requires that plan sponsors with calendar plan years beginning on or after January 1, 2007, provide a written notice on or before December 1, 2006, to participants informing them of their right to diversify.