Devoted to Corporate Attorneys, Corporate Lawyers, and Corporate Counsel

Under the Pension Protection Act of 2006 (PPA), employer stock investments funded through employer contributions (for instance, matching or profit-sharing contributions), plan sponsors must offer the right to diversify when the participant has completed three years of service.

Despite the phase-in, a right to diversify must be offered as of January 1, 2007, to participants who reached age 55 and who had completed at least three years of service before the plan year beginning on or after January 1, 2006.