EGTRRA Permanency

When the Pension Protection Act of 2006 became law last year, among other important provisions, it made permanent the retirement provisions contained in the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of 2001.

Because the provisions were not due to expire until 2010, we are especially fortunate that Congress acted prior to then. By doing so, it allows employers and employees participating in retirement plans to count on higher contribution limits for their retirement plans and individual retirement accounts (IRAs), It also allows for more flexible plan rules, portability, and a catch-up provision for those over 50, all of which have helped employees build their retirement savings in employer plans.

ICMA-RC, a market leader in public sector retirement security, commends the foresight of the policy makers in Congress and the Administration who made these provisions permanent well before they expired. Also, we appreciate the efforts of all those in the public sector who supported permanency for EGTRRA.

Please click on the following links for a comprehensive summary the provisions on the Pension Protection Act that impact the public sector as well as EGTRRA permanency and ICMA-RC's efforts to promote passage of this important law.