Pension Protection Act of 2006 Modifies ERISA Plan Asset Look-Through Rules to Allow Hedge Funds and Private Equity Funds to Accept Additional Investment Source Funds

August 25, 2006

The Pension Protection Act of 2006 (the “Act”) was signed by the President on August 17, 2006.  The Act changes the definition of plan assets to allow hedge funds and private equity funds to accept investments from governmental, foreign and non-electing church plans without subjecting the fund’s assets to ERISA’s fiduciary and Prohibited Transaction rules.

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