Pension Protection Act of 2006

This will allow employers to deduct more money using the pension tax shield in times of high profits.

One tax benefit allowed under the pension protection act is that qualified retired "Public Safety Officers" may exclude from income the cost of health insurance.

Public safety officers include police, firefighters, emergency medical technicians, and many types of federal and state employees dealing with criminals.

Operations are financed largely by insurance premiums paid by companies that sponsor pension plans and by investment returns.

The 1985 case National Foundation, Inc. (now Waterstone) v. United States, was instrumental in defining the standards used for Donor Advised Funds.

[1] The bill's sponsors, such as Senator Pat Roberts, indicated that the exemption from the Pension Protection Act (PPA) that would be granted under this bill was needed because "the PPA was meant to protect employee pensions, but in the case of rural cooperatives and charities, it jeopardizes plans for employees.

"[2] Senator Harkin criticized the PPA for forcing charity organizations to divert funds away from the services they provide.