ABI is pleased to announce your 2008-2009 co-chairs, as well as the addition of five new leadership positions. These new positions are a result of your feedback regarding opportunities for involvement and advancement in the association.
Co-Chairs: Carol Connor Cohen
Jeffrey B. Cohen
Charles M. Dyke
Education Director: Lisa Bittle Tancredi
Listserve Moderator: Daniel James Morse
Membership Relations Director: Nancy S. Heermans
Newsletter Editor: Mark A. Bogdanowicz
Special Projects/Task Force Leader: Joel Ruderman
Click here for contact information on your committee leaders.
Written by: Jeffrey B. Cohen
Ivins, Phillips & Barker; Washington, D.C.
Among the powers afforded the Pension Benefit Guaranty Corporation (PBGC) under the Employee Retirement Income Security Act of 1974 is the ability to initiate the involuntary termination of defined benefit plans. Until recently, the forum in which termination proceedings took place and the degree of deference afforded PBGC was well-settled. Involuntary terminations were heard in district court. Since PBGC’s determination—an “informal adjudication” in administrative law parlance—was reviewed under the arbitrary and capricious standard applicable to administrative agencies, involuntary terminations could proceed without the need for either discovery or expert testimony.
Enter the Seventh Circuit Court of Appeal’s decision in the United Airlines bankruptcy case. In re UAL Corp. (Pilots’ Pension Plan Termination), 468 F.3d 444 (7th Cir. 2006), cert. denied, 127 S. Ct. 1910 (2007). In Pilots’ Pension Plan Termination, the debtor-in-possession successfully argued that involuntary terminations should proceed before the bankruptcy court and that discovery beyond the administrative record was permissible. Although PBGC ultimately prevailed at trial in bankruptcy court on the merits, a determination that was affirmed on appeal, the Seventh Circuit held that PBGC’s determination was not entitled to deference. Recent amendments under the Pension Protection Act of 2006 equate a defined benefit plan’s termination date with the filing date of the bankruptcy case. Whether these amendments will obviate the need for PBGC to pre-emptively seek plan termination to prevent further loss remains to be seen.
Read the full article.
Materials from The Annual Spring Meeting
The 12th Annual Great Debates, held on Friday, April 4, at the Annual Spring Meeting, included a series of three lively debates on topics including executive compensation, mortgage issues, and professional fees in chapter 11 cases. Former ABI VP-Education (now President Elect) Robert J. Keach of Bernstein Shur in Portland, ME, moderated the debates.
Among the materials for the debate “Resolved: Congress Should Amend The Bankruptcy Code To Eliminate All Forms of Incentive, Bonus or Similar Compensation for Senior Executives and Other Insiders” were the following case summaries, which included selected post-BAPCPA KERP decisions. Babette Ceccotti of Cohen, Weiss & Simon LLP in New York, argued the pro side, and Michael L. Bernstein of Arnold & Portner LLP in Washington, D.C., argued the con side. The summaries were written by Michael L. Bernstein and Rosa J. Evergreen, both of Arnold & Porter LLP in Washington D.C.
Click here to review the case summaries. (pdf)
The meeting commenced at approximately 4:00 p.m. Co-chair Carol Connor Cohen announced the officers of the committee for 2008: in addition to herself, Jeffrey B. Cohen and Charles M. Dyke as co-chairs, new officers are Lisa Bittle Tancredi, Education Director; Dan Morse, Listserv Moderator; Mark Bogdanowicz, Newsletter Editor, Nancy Snyder Heermans, Membership Relations Director; and Joel Ruderman, Special Projects & Task Force Leader. Carol then solicited ideas for special projects for the year, noting that the last one was the Pension Manual, published in 2006, the first year of the committee’s existence. She invited members to contact any of the officers with ideas and suggestions.
Read the full minutes.
