Bankruptcy (BenefitsLink.com)Headlines re Bankruptcy, gathered by BenefitsLink.com6th Circuit Holds Unpaid Employer Contributions Do Not Fall Within Bankruptcy Discharge Exceptions- (Found July 8, 2008 ) Excerpt: "In this case, the Sixth Circuit Court of Appeals addressed the question of whether the United States Bankruptcy Code excludes from discharge a debt that an employer owes for failing to contribute to employee benefit funds. The Court held that it does not. The issue in the case involved employer contributions only as further explained in the targt page." (Health Plan Law blog by Attorney Roy F. Harmon III)http://healthplanlaw.com/?p=414 Overview: Executive Compensation and Bankruptcy: Retention Payment Rules- (Found July 8, 2008 ) 2 pages. Excerpt: "Federal trial courts have begun interpreting changes made to the Bankruptcy Code in 2005 that were designed to restrict retention pay and severance benefits. Several recent cases have addressed what constitutes a retention payment, so as to be subject to the special and strict rules on the addition of that type of compensation during bankruptcy." (NASPP Advisor via Utz Miller & Kuhn LLC)http://www.utzmiller.com/article_display.html?did=MzQ= Introductory Statement and Text of Protecting Employees and Retirees in Business Bankruptcies Act, S.2092 (PDF)- (Found July 8, 2008 ) Excerpt: "S. 2092. A bill to amend title 11, United States Code, to improve protections for employees and retirees in business bankruptcies; to the Committee on the Judiciary." (American Benefits Council)http://www.americanbenefitscouncil.org/documents/s_2092_110th.pdf Text: ''Protecting Employees and Retirees in Business Bankruptcies Act of 2007'' (PDF)- (Found July 8, 2008 ) 30 pages. Excerpt: "To amend title 11, United States Code, to improve protections for employees and retirees in business bankruptcies." (U.S. House of Representatives via American Benefits Council)http://www.americanbenefitscouncil.org/documents/hr_3652_110th.pdf PBGC Releases Bankruptcy Plan Termination Rule- (Found July 8, 2008 ) Excerpt: "The Pension Benefit Guaranty Corporation (PBGC) has proposed a rule to protect the agency from liability growth during employer bankruptcy proceedings." (PLANSPONSOR.com; free registration required)http://www.plansponsor.com/pi_type11/?RECORD_ID=42102 Delphi Retirement Plan Gets $2.2 Million- (Found July 8, 2008 ) Excerpt: "The federal government has obtained court approval to restore $2.2 million in retirement plan assets owed to hourly employees of auto supplier Delphi Corp. The U.S. Department of Labor said in a statement Monday the settlement approved by U.S. Bankruptcy Court ensures assets are available to pay future retirement benefits for workers." (AP via mlive.com)http://www.mlive.com/newsflash/index.ssf?/base/news-55/1214844541101400.xml&storylist=... Guidance Overview United States v. Jackson: Imposing Criminal Liability for Failure to Fund a Company's Pension Plan (PDF)- (Found July 8, 2008 ) Pages 6-7 of 8 pages. Excerpt: "Companies too often face financial distress. Chapters 7 and 11 of the Bankruptcy Code are premised on this, including the need to work out or forgive payments to various company creditors. The Fourth Circuit's decision in United States v. Jackson, 2008 WL 1903485 (4th Cir. May 1, 2008), reminds us, however, that there can be at least one class of creditor for whom you can go to jail for failure to payup: an ERISA plan." (Proskauer Rose LLP)http://www.proskauer.com/news_publications/newsletters/erisa/2008_06_01/_res/id=sa_PDF/163... Bankruptcy Bill Would Tie Executive Compensation to Workers' Wages- (Found July 8, 2008 ) Excerpt: "A House Judiciary subcommittee held a hearing on a bill that would limit the flexibility companies have in bankruptcy to restructure their labor costs and retain management staff. The 'Protecting Employees and Retirees in Business Bankruptcies Act,' H.R. 3652, by Judiciary Committee Chairman John Conyers (D-MI) would, among other things, limit the ability of the company or bankruptcy trustee to restructure collective bargaining agreements, retirement plans and other benefits by...http://www.hrpolicy.org/news/news_detail.asp?ID=3593 Book Review of 'Pension Dumping: The Reasons, the Wreckage, the Stakes for Wall Street'- (Found July 8, 2008 ) Excerpt: "The author Ms. Hawthorne has turned her attention to an important issue that in today's economy isn't going away anytime soon, pension plan terminations. In her new book, . . . Ms. Hawthorne takes an in-depth look on what happens when financially troubled companies terminate their defined benefit pension plans through bankruptcy." (Retirement Plan Blog)http://www.retirementplanblog.com/-pension-plans-pension-dumping-the-reasons-the-wreckage-... Bankruptcy Appellate Panel Limits 401(k) Loan Deduction- (Found July 8, 2008 ) Excerpt: "A 401(k) participant now seeking Chapter 13 bankruptcy protection may only deduct the balance she owes on two plan loans from her bankruptcy estate." (PLANSPONSOR.com; free registration required)http://www.plansponsor.com/pi_type10/?RECORD_ID=40906 |