Pension Dumping

Beschreibung

Fran Hawthorne, author of Pension Dumping, is a recipientof the New York State Society of Certified Public Accountants awardfor Excellence in Financial Journalism for 2009--the firstyear books have been honored. Pension plans in America no longer represent commitments thatfinancially troubled companies will honor. Neither bankruptcycourts, nor Washington, nor unions have the clout to make them doso. The disposition of these plans is instead left to serve theneeds of big investors. Often these investors are a failingcompany's best hope of restructuring after bankruptcy.Investors want a lean investment unburdened with financial promisesto employees no longer on the payroll. Despite laws passed todiscourage the termination of plans, the courts allow it, caving into the forces garnered to reinvigorate a failing company. Unionsare often compelled to choose between the financial welfare ofretirees and jobs for active workers. Pension Dumping explains in shocking detail howterminating the pension plan became a knee-jerk strategy forbankrupt companies that hope to attract big investors to help themreorganize. Hawthorne traces the dynamics and the players involved as a pensionis targeted for termination: * thebankruptcy court and the hierarchy of power that dictateswhose interests will prevail * the choices forced on unions * the burden placed on the Pension Benefit GuarantyCorporation * the risks investors take and the returns they look for * the companies' efforts to salvage what they can as theyrestructure, as well as the backlash they risk by breaking pensionpromises In 2008, Pension Dumping was cited in testimony beforea Congressional committee investigating bankruptcies in relation topensions.

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Fran Hawthorne

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"Will retirement security be an oxymoron for most Americans? FranHawthorne's Pension Dumping offers a clear-eyed, provocativelook at the critically important world of pensions." --Barbara Rudolph Author, Disconnected International Editor, The Deal "Having lived through the S&L crisis, I can't help but wonderwhat policy makers might have done had they been presented with aconcise, cogent description of the gathering of the perfect stormbefore events unfolded. Fran Hawthorne has written such a book forpension policy makers. Let's hope they take heed." --Olena Berg Lacy Assistant Secretary of Labor for the Pension and Welfare BenefitsAdministration, 1993-1998 "With clarity and even humor at times, Hawthorne examines acomplicated, multifaceted, and often troubling phenomenon withbroad current and future implications for companies, workers,retirees, taxpayers, and society as a whole. It is a cautionarytale well worth reading." --Phyllis C. Borzi Counsel for Employee Benefits, U.S. House ofRepresentatives, Committee on Education and Labor,1979-1995 "Fran Hawthorne provides a thought-provoking and lively analysis ofbankruptcy laws, specialized investment and capital marketstrategies, and where pensions fit into the strategies to movetroubled companies forward. She discusses how the bankruptcy lawsfocus on the business in the future and how these laws ignore therights of employees. She also suggests areas for policychange." --Anna M. Rappaport, F.S.A., M.A.A.A. Anna Rappaport Consulting Past President of the Society of Actuaries
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