Devoted to Corporate Attorneys, Corporate Lawyers, and Corporate Counsel

The following is not meant to be legal advice.

On November 30, 2006, the Internal Revenue Service (IRS) extended the deadline 
for plan sponsors to furnish employer stock diversification notices by adding a grace 
period of up to one month.  The Pension Protection Act of 2006 (PPA) requires 
defined contribution plans holding publicly traded employer stock to furnish a written 
notice to plan participants informing them of their right to diversify out of employer 
stock at least 30 days before the date they are eligible to diversify.  The diversification 
requirements vary depending on whether employer stock investments stem from 
employee or employer contributions. Certain plan sponsors were required to furnish 
a written notice during December 2006. For these plans, the IRS extended the 
deadline for distributing the notice to January 1, 2007.