Pension Plan Amendments Act (PPAA)

The Pension Plan Amendments Act (PPAA) is a law that allows pension plans to be updated or changed after they are initially set up. It provides rules for making modifications—such as adjusting benefit formulas or contribution requirements—while ensuring that these changes are fair and don’t unfairly reduce employee benefits or jeopardize the plan’s financial health. Essentially, the PPAA ensures employers and plan administrators can adapt pension plans in response to changing circumstances while protecting the interests of plan participants.