Government: Pensions
| ID | Name | Group | Other | Code
Sec |
Cross
Ref | Problem
Referenced | Proposed
Solutions |
NBRC-
0303 | Commercial Law League of America | Commercial Law League of America (CLLA) |
|
|
| The Commerical Law League of
America believes that the following issues should be considered by the
NBRC: What priority, if any, should the claims of the PBGC be entitled
to upon termination of an insured plan To a lien recognized in
bankruptcy What should be the role of the PBGC in participating in a
reorganization case | The CLLA believes that
these issues should receive high priority (no additional details are
provided). |
NBRC-
0320 | Robert M. Zinman, on behalf of the Bankruptcy
Institute | American Bankruptcy Institute
("ABI") | Numerous position papers,
memoranda and research material |
|
| Bankruptcy Code provides adequate protection of employee
benefits, but some adjustments are necessary. | "The PBGC should not get a springing partial lien when the
minimum funding payments are not made. Either ERISA should give the
PBGC a lien on specific categories of assets or Congress should decide
that the minimum funding obligations should be
unsecured." |
NBRC-
0320 | Robert M. Zinman, on behalf of the Bankruptcy
Institute | American Bankruptcy Institute
("ABI") | Numerous position papers,
memoranda and research material |
|
| As the PBGC's claims are often among the largest in bankruptcy,
they lead to costly and lengthy litigation in numerous cases.
Bankruptcy court's have repeatedly rejected priority for these claims,
but because the PBGC has colorable arguments for its claims, they PBGC
continues to assert the same priorities in every case, notwithstanding
the many adverse court decisions. | Code
should be amended to clarify the existing state of the law and make
clear that the claims of the PBGC are not entitled to
priority. |
NBRC-
0386 | National Association of Credit Management | National Association of Credit Management
("NACM") |
|
|
| In this statement entitled "Issues Involving Governmental
Agencies and Bankruptcy," the NACM expresses the following conerns
about government agencies in the bankruptcy process: the role of the
Pension Benefit Guaranty Corporation needs to be balanced with the needs
of debtors and creditors. | Code should be
amended to curtail excessive paperwork assocaited with pensions, and
unfunded pension benefits should have no rights greater than unpaid
obligations to other unsecured creditors. |
NBRC-
0404 | James J. Keightley | General Counsel,
Pension Benefit Guaranty Corporation
("PBGC") |
| 503 and 507 | 28 U.S.C. §
157(d) | Sections 503 and 507 are unclear, and
need to be reconciled with the various provisions of the Bankruptcy
Code, ERISA and the Internal Revenue Code. Also, matters involving
substantial and material consideration of both bankruptcy and
non-bankruptcy federal law, upon timly motion of a party, must be dealt
with by the district court rather than the bankruptcy court under 28
U.S.C. § 157(d). PBGC appreciates being allowed to serve on
creditors' committees. PBGC is concerned that the tentative
recommendation of the Commission regarding claims classification could
lead to abuse and necessitate litigation.. Creditors should not have
their claims against third parties extinguished, especially with regard
to co-obligors not themselves debtors in cases under Title
11. | Sections 503 and 507 should be clarified
with respect to their interaction with ERISA and the Internal Revenue
Code. Mandatory withdrawl should be retained, particularly in cases in
which interpretation of the Bankruptcy Code, ERISA and the IRC are all
involved. While examining the fiduciary duties of a debtor in
possession ("DIP") that arise upon filing of a chapter 11
petition, the Commission should include those duties that the DIP may
inherit under ERISA. |
NBRC-
0596 | William G. Beyer | Deputy General
Counsel, Pension Benefit Guaranty Corporation |
|
|
| Author is forwarding a list of
several issues of interest to the PBGC for discussion at the
Commissions's April meeting. | Suggestions are
made in the areas of: 1. Duties of the Debtor in Possession; 2.
Priorities under Sections 503 and 507; 3. Composition of Creditors'
Committees; 4. Classification of Similar Unsecured Claims; and, 5.
Discharge of Co-Obligors. |