Talk:Pension Benefit Guaranty Corporation

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[edit] How bankruptcy law hurts the PBGC

Because of the operation of the automatic stay and the power of the United States trustee [[[incorrect; should read simply "bankruptcy trustee"] to avoid transfers and other transactions within a certain period under Section 544 of the Bankruptcy Code [????? incomplete sentence]

According to Nicholas Brannick's article in the 2004 Ohio State Law Journal, At the Crossroads of Three Codes (IRS, Bankruptcy, ERISA) page 1606 "Despite the appearance of protection for the PBGC's interest in the event of termination, the Bankruptcy Code frequently strips the PBGC of the protection provided under ERISA. Under ERISA, termination liability may arise on the date of termination, but the lien that protects the PBGC's interest in that liability must be perfected" But the act of perfecting a lien is considered by the ill-advised [non-neutral point of view] bankruptcy judges to be the equivalent of other post-petition "transfers" which the bankrupcty trustee can avoid. This is due to the definition of a "transfer" to include [sic] things like obtaining a security interest or lien or even the perfecting of such security interest.

A similar problem with interpretation of the powers of the trustee to avoid transfer also showed up in the infamous [non-neutral point of view] Deprizio case, which Congress thouight [sic] they correct [sic] in the 1994 Bankruptcy Reform [actually the correction was made in the 1984 amendments, not the 1994 Bankruptcy Reform Act.] Most recently in the 2005 Bankruptcy Reform Act, Congress added Section 547(i) to correct the judges [non-neutral point of view] on reversing transfers for non-insiders being treated as insiders.

Note: I moved the above text from the main article on 7 January 2006, and added the bolded comments at that time. Famspear 18:43, 6 February 2006 (UTC)

[edit] Plan Termination article

I think we need a separate article to deal with this and we can link both the ERISA and the PBGC article's termination section to it. I will look for my study note written by former PBGC head Roh Gebhardsbauer.John wesley 19:56, 6 February 2006 (UTC)