The Pension Protection Act of 2006 (“PPA”) made several mandatory and permissive changes to the rules applicable to qualified defined contribution and defined benefit pension plans. Currently, administrative compliance is required for the PPA’s mandatory changes, while compliance with the permissive changes is required to the extent affirmatively approved by the plan administrator. Generally, all calendar-year plans must be amended and updated to reflect the applicable PPA provisions by the end of 2009. Because many plan sponsors have certain procedures and policies that must be met to amend plans, plan sponsors should start planning now for their year-end amendments, taking into account any required board or committee involvement to review and execute documents in a timely manner. The consequences of failing to timely amend a plan for PPA could range anywhere from monetary penalties to revocation of tax-qualified status in egregious cases.