A Principal news release said the report gives each actuarial defined benefit client of The Principal customized data on their plan to satisfy Pension Protection Act (PPA) mandates. The report also provides newly developed tools to make future planning faster and easier.
Specifically, according to the announcement, the new tool provides:
- the ability to easily forecast potential funding levels and evaluate plan changes with a plan funding volatility tool;
- a complete “Rules and Regulations” section for quick reference on important PPPA plan legislation, terminology, and rules of operation;
- full-color formatting for better understanding in simple language; and
- an online version with easy navigation on the Principal Sponsor Service Center .
The company has revamped the report to make planning easier and help sponsors understand the new PPA-imposed regulations that call for more information and impose tighter deadlines. If sponsors miss the April 1 reporting deadline, some could face restrictions on paying out benefits, Principal pointed out.
“It’s like they’re cramming for a final in quantum physics. And we’re giving them the Cliffs Notes,” said Chris Mayer, vice president of defined benefit services at The Principal, in the news announcement. “Defined benefit plan regulations are incredibly complex,” Mayer continued. “This re-designed annual report cuts through the legalese and makes those convoluted concepts much easier to understand. That helps financial professionals and plan sponsors make better decisions in less time.”