What if a Collective Bargaining Agreement Contemplates Pension Plan Participation?
If a collective bargaining agreement provides for continued pension plan participation, the pension plan may not be terminated by the plan sponsor (in a distress termination or otherwise) unless the plan sponsor complies with Section 1113 of the Bankruptcy Code. To terminate a collective bargaining agreement under Section 1113, the plan sponsor must prove to the court that (i) the plan sponsor has made a proposal to the union that is based upon the most complete and reliable information available at the time of the proposal, (ii) the modifications are necessary to permit reorganization of the plan sponsor and all affected parties are treated fairly and equitably, (iii) the plan sponsor has met with the union representative at reasonable times subsequent to making the proposal and has negotiated in good faith, (iv) the union has refused to accept the plan sponsor’s proposal without good cause and (v) the balance of the equities clearly favors rejection of the collective bargaining agree
Related Questions
- As an employer, can I negotiate my responsibility to complete the I-9s in a collective bargaining agreement with a union?
- Can an employee who is being laid off also take an Early Separation Incentive under the collective bargaining agreement?
- What if a Collective Bargaining Agreement Contemplates Pension Plan Participation?
