Bankruptcy and Employee Benefit Plans: Harmonizing Conflicting Requirements That Cannot All Be Implemented

This CLE webinar will offer guidance on several key areas where employee benefits law, namely the Employee Retirement Income Security Act of 1974 (ERISA), and bankruptcy law intersect. The program will discuss pension plan termination and withdrawal liability and claims, fiduciary duties in plan administration and termination, and how an individual debtor can shield retirement income from creditor claims. The panel will also consider the Department of Labor's revised Abandoned Plan Program and what happens to health and welfare plans for existing and retired employees and certain types of unusual plans and compensation programs.

Unfunded pension plan liability and other benefits issues are often the precipitating factors that drive a company into bankruptcy where debtors will have to decide whether to continue or terminate benefit plans, with all the attendant consequences. Navigating employee benefits issues in bankruptcy frequently turns on whether the Bankruptcy Code or ERISA is the controlling law.

In certain situations, the Bankruptcy Code will actually override ERISA. In other situations, ERISA and the Bankruptcy Code can be harmonized, and in still other situations, which law trumps the other remains open to debate. For example, bankruptcy courts may choose to determine pension plan withdrawal liability as part of the claims allowance process notwithstanding alternative dispute resolution mechanisms required by ERISA. And how to calculate claims of the Pension Benefit Guaranty Corp. has long been subject to confusion, debate, and challenge.

Health and welfare plans cannot be ignored. These may be of particular concern when the debtor provides retiree medical benefits.

Listen as our expert panel of bankruptcy and employee benefits lawyers discusses navigating the intersection of bankruptcy and employee benefits law whether the employer intends to reorganize or sell assets, and issues of concern to individual debtors.