The face of retirement saving will be changed forever when President Bush signs the Pension Protection Act of 2006. This transformation is not far off as the proposal has already got the approval of the senate. The pension reform comprises of a lot many components. All these components are designed in a way that would complete the long process which will make the individuals responsible for funding their own retirement. An interesting fact that arises is that the new system will resemble the old system wherein the corporations funded the retirement savings.



Now let us look at some of the key issues in the scheme



Automatic enrollment



The participation in the scheme can be boosted by the employers who can automatically enroll workers. Such individuals can later opt out of the scheme and decline to accept it.



Investment advice

The act would encourage plan sponsors to hire financial advisors from outside who can give personal advice to the workers.