Termination of Multiple Pension Plans By a Bankrupt Company Should Be Analyzed on an Aggregate Basis According to Latest ABI Poll
TERMINATION OF MULTIPLE PENSION PLANS BY A BANKRUPT COMPANY SHOULD BE ANALYZED ON AN AGGREGATE BASIS, ACCORDING TO LATEST ABI POLL
February 5, 2007, Alexandria, Va. — Nearly half (49 percent) of respondents in a recent American Bankruptcy Institute online poll said that an employer looking to terminate more than one pension plan in a chapter 11 proceeding should have the plans analyzed on an aggregate rather than a plan-by-plan basis. Twenty-six percent of respondents “agreed strongly” and another 23 percent “somewhat agreed” that the termination of pension plans by a company in chapter 11 should be done on an aggregate rather than case-by-case basis.
Thirty-seven percent disagreed that termination of multiple pension plans should be considered on an aggregate basis, rather than case-by-case, for bankrupt companies. Twenty-nine percent “disagreed strongly” and another eight percent “somewhat disagreed” that the multiple pension plans should be analyzed on an aggregate basis for chapter 11 companies looking to terminate them during the reorganization process.
The poll question is based on a recent case (In re Kaiser Aluminum), in which the U.S. Court of Appeals for the Third Circuit unanimously held that when an employer in chapter 11 seeks to terminate more than one pension plan, the plans must be analyzed on an aggregate rather than a plan-by-plan basis.
ABI members and members of the public were welcome to submit their response to the statement: “When an employer in chapter 11 terminates more than one pension plan, the plans must be analyzed on an aggregate rather than a plan-by-plan basis. (In re Kaiser Aluminum).” The latest ABI Quick Poll was open for voting from Jan. 20 - Jan. 31.
ABI’s weekly Quick Poll is posted on ABI’s home page, www.abiworld.org. ABI members and the public are invited to respond to a question on a timely bankruptcy or insolvency issue. Visit http://www.abiworld.net/quickpoll/ to access the results of previous ABI Quick Polls.
ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 11,500 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.