Research Catalog

Title

Benefit Protection [electronic resource]: Priority Creditor Rights for Pension Funds / Fiona Stewart

Author

Stewart, Fiona.

Publication

Paris : OECD Publishing, 2007.

Details

Description

30 p.; 21 x 29.7cm.

Summary

Underfunded pension funds are in the same position as other creditors when their sponsoring firm becomes insolvent, having to join the queue claiming the remaining assets of the firm. Arguments for granting pension fund priority rights over other creditors are the same as for introducing pension benefit guarantee schemes – i.e. market failure and diversification. Arguments against such a priority position focus around the impact on other creditors and potential disruptions to capital markets. The OECD's report on priority pension claims within bankruptcy found that pension claims (unlike wages) rarely receive priority over other creditors. More concerning, it can be difficult for pension fund creditors (being a diverse group without strong financing) to get their voice heard properly within insolvency procedures. Difficulties with providing such priority status to pension creditors stem from problems with changing bankruptcy laws and the strength of other financial creditors. The OECD's report concludes that priority rights should be given to unpaid and due contributions from the plan sponsor and that care should be taken that pension beneficiaries be treated at least as well as other creditors in any bankruptcy or restructuring process (e.g. ensuring their representation on creditor committees).

Series Statement

OECD Working Papers on Insurance and Private Pensions, 1993-6397 ; no.6

Uniform Title

OECD Working Papers on Insurance and Private Pensions, no.6.

Subject

Finance and Investment

LCCN

10.1787/267415864801

OCLC

oecd-lib-003930

Author

Stewart, Fiona.

Title

Benefit Protection [electronic resource]: Priority Creditor Rights for Pension Funds / Fiona Stewart

Imprint

Paris : OECD Publishing, 2007.

Series

OECD Working Papers on Insurance and Private Pensions, 1993-6397 ; no.6

OECD Working Papers on Insurance and Private Pensions, 1993-6397 ; no.6.

Connect to:

http://dx.doi.org/10.1787/267415864801

Indexed Term

Finance and Investment

Other Standard Identifier

10.1787/267415864801 doi