Legal Issues in Terminations of Single-Employer Pension Plans: Beck v. PACE International Union
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Staman, Jennifer; Lunder, Erika
[Excerpt] On January 19, 2007, the U.S. Supreme Court granted certiorari in Beck v. PACE International Union. The case concerns the decision by an employer in bankruptcy proceedings to terminate its pension plans. The employer, which was both plan sponsor and administrator, had the option of terminating the plans by buying annuities for plan participants and beneficiaries or by merging the plans with a multiemployer plan. It chose the annuity option. At issue in Beck is whether the employer breached the fiduciary duty owed under the Employee Retirement Income Security Act (ERISA) to plan participants and beneficiaries by failing to adequately consider the merger proposal. This report discusses the Beck case and will be updated as events warrant.
ERISA; U.S. Supreme Court; pension plan; bankruptcy proceeding; termination; annuities; employer; assets; benefit; liabilities; participants; beneficiaries
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