The Risks Associated With Underfunded Pensions

Law360, New York (March 30, 2016, 11:22 AM EDT) -- The Pension Benefit Guaranty Corp.'s widely reported[1] recent settlement agreement with the Renco Group Inc. illustrates the risks inherent in pursuing certain transactions where underfunded pensions are present. Among the highlighted risks is the potential for the joint and several liability provisions of federal pension law[2] to enable the PBGC to reach for assets unrelated to a pension plan sponsor's business, including personal assets of controlling persons, to satisfy underfunded pension claims....

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