CHANTILLY, Va. - President Bush signed The Pension Protection Act, P.L. 109 – 280 into law last month. It will affect all single and multiemployer defined benefit plans, including the National Pension Fund and local pension funds. Most of the new law's provisions take effect in 2008.

The new law increases the deduction limit for employer contributions to 140 percent of current liability, up from 100 percent, enabling plans to build financial reserves to offset future downturns in the market. The law eliminates the punitive IRS excise tax for employers in plans with an accumulated funding deficiency.