1-Hour Program

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Overview

For many employers, ERISA pension underfunding can be hard to live with:  Congress recently gave plan sponsors a cash flow break by relaxing the rules on required funding contributions -- but those interest-bearing liabilities are still there, grinding away.  Meanwhile, the federal pension guarantor, PBGC, often takes a keen interest -- and sometimes intrusive action -- in sales and spinoffs and other transactions that may compromise a plan sponsor’s financial ability to satisfy its pension obligations.  And companies with a collectively-bargained workforce often find themselves tied to multiemployer pension plans that may never regain financial capability -- but how to sell such a business?  And, can such a business be bought safely? 

This One-Hour Briefing surveys recent developments which shed light on how employers and business buyers and sellers deal with underfunded ERISA pension plans.  The program will be of particular interest to M&A and restructuring professionals.  Topics to be addressed include:  

MEPP Issues: 

  • What are the risks and potential liabilities in joining a multiemployer pension plan?
  • What about hybrid multiemployer pension plans with separate new employer pools?
  • Partial withdrawal and successor liability developments

From the Hill and Beyond:

  • ERISA 4062(e) - agency policy and Congressional reform
  • ERISA 4043(c) - new regulations coming
  • Kickin’ the can down the highway:  ERISA funding goes lite, but PBGC raises variable premiums while the Society of Actuaries predicts almost-eternal youth
  • Is de-risking risky?

PBGC – On the March:

  • PBGC’s controlled group claims against foreign affiliates
  • PBGC chooses the nuclear option (the curious case of St. Gobain Glass)
  • Transactions to evade liability (PBGC cries foul) 

Featured Speakers: 

Robert C. Fleder, Chair of Paul, Weiss, Rifkind, Wharton & Garrison LLP's Employee Benefits and Executive Compensation Group

Michael P. Barry, President, Plan Advisory Services Group

Ira M. Golub, Partner, Proskauer Rose LLP

Suzanne Kelly, Principal, Kelly Garfinkle Strategic Restructuring LLC

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