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Supreme Court: Merger is not a Termination

June 11th, 2007 · No Comments

The U.S. Supreme Court issued a decision today in Beck v. PACE International Union. The case involved a situation where the employer filed for bankruptcy protection, and the union, who represented the employees covered by the employer’s single-employer defined benefit plan, proposed that the employer merge the plan with an existing union multiemployer plan instead of terminating the plan. The employer rejected this proposal, and terminated the plan. The U.S. Supreme Court held that the employer did not breach its fiduciary obligations in failing to consider the union’s merger proposal because merger is not a permissible form of plan termination under ERISA.

Rather than trying to reinvent the wheel on analyzing this opinion, I decided to check out what some of my colleagues are saying about this opinion today.

Amy Howe and Todd Rouse have posted a good analysis of the decision on SCOTUSblog.

Stephen Rosenberg of the Boston ERISA & Insurance Litigation Blog has been following this case, and has posted a brief analysis of this opinion along with links to his previous posts about this case on the Boston ERISA & Insurance Litigation Blog.

Richard Bales of the Workplace Prof Blog posted some key highlights from the opinion.

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Tags: Litigation

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