Protecting Retirees in Mergers, Acquisitions and Spin-offs
The advent of globalization and attendant behavior of U.S. firms in forming joint ventures and engaging in mergers, acquisitions and spin-offs involving foreign and U.S.-owned corporations has added complexity to the determination of how U.S. retirees’ pension and welfare benefits are protected from being reduced or eliminated as a result of change in ownership.
Mergers and acquisition activity can ultimately result is dissolution of a corporation, loss of jobs and loss of retiree pension and welfare benefits. Consequently, the involvement of Bankruptcy Courts and the PBGC are always possible outcomes of M&A efforts done badly. Thus, pension plan asset protection issues are very important to the AREF/NRLN.
The AREF’s white paper describes the foundation for determining which U.S. statutes must be modified or created to better protect retirees. The paper includes proposed legislative solutions and/or regulatory rule changes that are required to protect U.S. plan participants. For more details, click on the White Papers tab and in the Pensions section select Protecting Retirees in Mergers, Acquisitions & Spin-offs.
