WASHINGTON -- As Delphi Corp.'s bankruptcy case winds it way through the courts, three Ohio congressman are pushing legislation aimed at helping Delphi employees deal with potential cuts to their health care benefits. If a portion of Delphi's pension costs were to be taken over by the federal government following a bankruptcy, some employees could apply 65 percent of their health insurance premiums toward a tax credit. But sometimes the time gap between when a company files for bankruptcy and when the Pension Benefit Guaranty Corporation takes over leaves employees at risk, according to Chad Tanner, a spokesman for U.S. Rep. Ted Strickland, D-Lisbon.
They've halted further contributions, tried to buy employees out of plans or totally abdicated their commitment to workers by abusing the federal bankruptcy law, leaving the Pension Benefit Guaranty Corporation to pick up the pieces. With more of the funding burden shifting to employees, we all have to be prepared to take the additional step of setting up individual retirement accounts (IRAs), Roth IRAs and the like.
On Sep 14, 2005, both Delta Airlines and Northwest Airlines filed for chapter 11 bankruptcy protection. By filing for bankruptcy on the day before a mandatory payment of sixty-five million dollars to the Pension Benefit Guaranty Corporation ("PBGC") was due, Northwest Airlines effectively made the PBGC an unsecured creditor for the entire amount it was owed. By taking advantage of the deficiencies in the bankruptcy statutes ("Bankruptcy Code") and the Employee Retirement Income Security Act ("ERISA"), companies entering bankruptcy are able to shed significant pension obligations that were never intended to be borne by the PBGC. This type of maneuvering has left the PBGC with record deficits and unsustainable long-term losses. By all measures, the PBGC is facing a crisis that becomes mor...
General Motors Co.'s recent stock offering was staged to start paying back the government for its $50 billion bailout, but one group made out much better than the taxpayers or other investors: the company's union. Thanks to a generous share of GM stock obtained in the company's 2009 bankruptcy settlement, the United Auto Workers is well on its way to recouping the billions of dollars GM owed it - putting it far ahead of taxpayers who have recouped only about 30 percent of their investment and further still ahead of investors in the old GM who have received nothing.
...The union's health care and pension trust fund earned $3.4 billion through the sale of...He said it wasn't only the union that benefited from getting full repayment to its pension trust f... the liability put on the Pension Benefit Guaranty Corporation," he said. Bankruptcy courts often dis...
... PENSION BENEFIT GUARANTY CORPORATION,. Defendant-Appellant,. ...) from an Order of the United States Bankruptcy Court, Southern District of New York (Allan L. ...
Collects All Proposed and Final Regulations Affecting Employee Benefit Arrangements ARLINGTON, Va., May 21 /PRNewswire-USNewswire/ -- BNA Books, a division of specialized news and information publisher BNA, announced today the publication of the 2010 Edition of ERISA Regulations.
... of Labor, the Treasury Department, the Pension Benefit Guaranty Corporation, and other federal ag...Pension Benefit Guaranty Corporation. Bankruptcy filing date as the plan termination date for certa...
...Pension Benefit Guaranty Corporation 3. Pension Protection Act of 2006 B. G... Secured Creditor Status Under the Bankruptcy Code VI. CONCLUSION I. INTRODUCTION . Through the ...
More bailouts are on the horizon. Even though taxpayers will shell out at least $250 billion to cover losses from Fannie Mae and Freddie Mac, there's another, much less known federally chartered corporation that's racking up the red ink - currently $23 billion worth. The Pension Benefit Guaranty Corp. (PBGC) could be the next to fall. Established in 1974, PBGC insures the traditional pensions of more than 44 million American employees. It collects premiums from defined-benefit retirement plans, and when private-sector companies that offer the plans go belly-up, PBGC assumes the pension obligation. With the economy faltering, more companies have sought the protection of bankruptcy, and pressure on PBGC mounts. The gift retailer Harry & David recently exited Chapter 11 bankruptcy organiza...
ARLINGTON, Va., Dec. 21, 2011 /PRNewswire-USNewswire/ -- BNA Books, a division of specialized news and information publisher BNA, today announces the publication of the 2012 Edition of ERISA Regulations, providing all the rules and regulations on employee benefits issued by federal agencies. (Logo: http://photos.prnewswire.com/prnh/20090105/56509LOGO)
... 31, 2011, from the Department of Labor, Pension Benefit Guaranty Corporation, and the Treasury Dep... initiated by PBGC and on the bankruptcy filing date treated as plan termination date. Inte...
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