Law Commons^™

Should Labor Abandon Its Capital? A Reply To Critics, David H. Webber

Faculty Scholarship

Several recent works have sharply criticized public pension funds and labor union funds (“labor’s capital”). These critiques come from both the left and right. Leftists criticize labor’s capital for undermining worker interests by funding financialization and the growth of Wall Street. Laissez-faire conservatives argue that pension underfunding threatens taxpayers. The left calls for pensions to be replaced by a larger social security system. The libertarian right calls for them to be smashed and scattered into individually-managed 401(k)s. I review this recent work, some of which is aimed at my book, The Rise of the Working-Class Shareholder: Labor’s Last Best Weapon, …

The Other Janus And The Future Of Labor’S Capital, David H. Webber

Faculty Scholarship

Two forms of labor’s capital—union funds and public pension funds—have profoundly reshaped the corporate world. They have successfully advocated for shareholder empowerment initiatives like proxy access, declassified boards, majority voting, say on pay, private fund registration, and the CEO-to-worker pay ratio. They have also served as lead plaintiffs in forty percent of federal securities fraud and Delaware deal class actions. Today, much-discussed reforms like revised shareholder proposal rules and mandatory arbitration threaten two of the main channels by which these shareholders have exercised power. But labor’s capital faces its greatest, even existential, threats from outside corporate law. This Essay addresses …

Reforming Pensions While Retaining Shareholder Voice, David H. Webber

Faculty Scholarship

Public pension and labor union funds have been the driving force in diversified shareholder activism. They have also fended off attacks on jobs and proactively created jobs for fund contributors. These funds currently represent almost $4 trillion in assets over which workers have substantial control. That worker control - and the collective nature of defined benefit pension plans - is the necessary precondition for their shareholder activism. Both worker control and collective investment are directly threatened by the rise of defined contribution funds, particularly by well-funded efforts to promote the 401(k) in the public sector, the last bastion of the …

The Impact Of Law On The State Pension Crisis, Elizabeth S. Goldman, Stewart E. Sterk

Faculty Articles

While some state and municipal pension plans have funds sufficient to meet obligations to retirees without imposing onerous obligations on current and future taxpayers, underfunding of plans in other states has reached disastrous proportions, raising the possibility of default on pension obligations, cuts in public services, steep tax increases, or some combination of the three. The substantial differential in pension funding might be attributed to divergent political pressures, different responses to uncertainty about investment returns, or other factors. Our examination of pension funding law in ten states-five with the best-funded plans and five with the worst-funded plans-highlights the role of …

Can God Create A Rock So Heavy That He Cannot Lift It?: Outlawing Pensions Under State Constitutions, Chad J. Pomeroy

Faculty Articles

Public pensions are a problem. More than twenty-seven million people participate in state and local government pension plans. And those plans are in the hole trillions of dollars. This means that state and local governments are going to have to raise additional trillions in taxes (or shift those trillions away from schools, police, firemen, or other spending targets) to satisfy these obligations.

What can be done about such a large, seemingly intractable problem? A number of states have installed specific pension funding requirements within their constitutions. Most state constitutions contain some kind of balanced budget requirement, and a number of …

Op-Ed: California’S Most Powerful Voice On Wall Street? Its Pensions, David H. Webber

Shorter Faculty Works

The fight over public pensions in California is almost exclusively described as a dispute between people worried about tax hikes and public servants wanting to get paid what they were promised. But this is only part of the pension story — one focused on the “liability” side of the balance sheet.

Lessons From The Efforts To Manage The Shift Away From Defined Benefit Plans To Defined Contribution Plans In Australia, The United Kingdom, And The United States, Elizabeth F. Brown

Elizabeth F Brown

This is an earlier version of this Article that was published in the 53 American Business Law Journal 315 (Summer 2016). Please see that journal for the final version of this Article. This Article examines what lessons may be learned from examining how Australia, the United Kingdom, and the United States have tried to manage the shift away from defined benefit plans towards defined contribution plans. This shift has fundamentally changed the relationship between workers and the financial industry. While defined contribution plans provide employees with some advantages over defined benefit plans (e.g., portability, early vesting, greater autonomy), they also …

Reconciling The Municipal Pension Problem With Chapter 9'S Automatic Stay: A Case Note On In Re City Of San Bernardino, Michael Simon

The Journal of Business, Entrepreneurship & the Law

Using In re City of San Bernardino as a springboard, this Note explores both the descriptive and analytic dimensions of a municipality seeking relief from its pension woes within the context of Chapter 9 of the Bankruptcy Code. As a descriptive matter, this Note illustrates that municipalities need alternative solutions to address the growing public pension problem besides issuing municipal bonds. Given the structure of certain public defined benefit pension systems, the strategy of issuing municipal bonds to raise cash has substantial disadvantages. In certain contexts, Chapter 9 of the Bankruptcy Code provides a significantly better alternative. Unlike a business …

A Failure To Supervise: How The Bureaucracy And The Courts Abandoned Their Intended Roles Under Erisa, Lauren R. Roth

Pace Law Review

This Article addresses how courts failed to adequately supervise employers administering pension plans before ERISA. Relying on a number of different legal theories—from an initial theory that pensions were gratuities offered by employers to the recognition that pension promises could create contractual rights—the courts repeatedly found ways to allow employers to promise much and provide little to workers expecting retirement security. In Section III, this Article addresses how Congress failed to create an effective structure for strong bureaucratic enforcement and the bureaucratic agencies with enforcement responsibilities failed to fulfill those functions. Finally, in Section IV, this Article discusses how the …

Sistema Pensionistico Enasarco, Michele Faioli

Michele Faioli

La Fondazione Giacomo Brodolini e la SERI - Scuola Europea di Relazioni Industriali hanno svolto per conto di FIARC una ricerca sul sistema pensionistico ENASARCO. La ricerca sarà presentata al convengo che si terrà il 4 ottobre p.v. , a Roma, presso la Sapienza, Università di Roma. In occasione di tale Convegno, saremmo onorati della Sua autorevole presenza presenza in qualità di discussant alla tavola rotonda.

Promises To Keep: Ensuring The Payment Of Americans' Pension Benefits In The Wake Of The Great Recession, Kenneth G. Dau-Schmidt

Articles by Maurer Faculty

In this essay, I examine the problem of designing a pension plan within the context of our larger public policy of encouraging workers to save for retirement. I discuss the various problems and risks inherent in encouraging workers to adequately save for retirement, invest those assets efficiently, and ensure the planned level of retirement consumption for the remainder of their lives. I also discuss the three major types of pension plans in the American retirement system, defined benefit, defined contribution, and hybrid, and assess how well each of these types of plans deals with the problems encountered in designing a …

Applying Equitable Estoppel To Erisa Pension Benefit Claims, Adam S. Mcgonigle

William & Mary Law Review

No abstract provided.

A Limit On Downsizing: Varity Corp. V. Howe, James B. Shein

Pepperdine Law Review

No abstract provided.

The Temporally-Flawed Concept Of Binding Promises In American Collective Bargaining And Employee Benefits Law: A Source Of The Concurrent Crises In The U.S. Industrial Relations, Retirement, And Health Care Systems, Marley S. Weiss

Marley S. Weiss

The American collective bargaining system is in serious trouble, as is the employee benefits system providing pensions and health care benefits for millions of non-union as well as unionized workers and retirees. The portion of the labor force covered by collective bargaining has dropped so low that one can barely refer to it as a system. Simultaneously, the American private employer-based pension system is moving towards a crisis. Large employers with the finest pension plans, covering thousands of workers and retirees, in industry after industry, are terminating their pension plans, or replacing them with cheaper, weaker retirement programs, often while …

West Virginia Courts Attempting To Equitably Distribute Defined Benefit Pension Plans During Divorce Proceedings: An Examination Of The Immediate Offset And Deferred Distribution Methods, Alex Greenberg

West Virginia Law Review

No abstract provided.

It's Payback Time, Or Is It?: An Argument To Apply Universal Heightened Standards To All Employee Stock-Based Individual Account Programs In The Post-Enron Era And Why Sarbanes-Oxley's Preventive Measures Do Not Adequately Protect Employee Investor Interests, Sarah Y. Rifaat

Pepperdine Law Review

No abstract provided.

Fait Accompli?: Where The Supreme Court And Equal Pay Meet A Narrow Legislative Override Under The Lilly Ledbetter Fair Pay Act, Megan Coluccio

Seattle University Law Review

This Comment argues the Lilly Ledbetter Fair Pay Act’s consequences will be minimally felt, so long as the Act is narrowly construed. The Comment suggests congressional action was appropriate after the Supreme Court’s Ledbetter decision and discusses the political and legislative debate leading to the Act. In addition, the Comment analyzes the Act in application, exploring its meaning, implications, and function. The Comment argues that the concerns and consequences arising from the enactment of the Act can be alleviated and avoided by a narrow interpretation of its amendment to Title VII of the Civil Rights Act. Finally, the Comment recommends …

The Temporally-Flawed Concept Of Binding Promises In American Collective Bargaining And Employee Benefits Law: A Source Of The Concurrent Crises In The U.S. Industrial Relations, Retirement, And Health Care Systems, Marley S. Weiss

Faculty Scholarship

The American collective bargaining system is in serious trouble, as is the employee benefits system providing pensions and health care benefits for millions of non-union as well as unionized workers and retirees. The portion of the labor force covered by collective bargaining has dropped so low that one can barely refer to it as a system. Simultaneously, the American private employer-based pension system is moving towards a crisis. Large employers with the finest pension plans, covering thousands of workers and retirees, in industry after industry, are terminating their pension plans, or replacing them with cheaper, weaker retirement programs, often while …

Commentary: Is It Time To Take The Broom And Really Clean House? A New Paradigm For Employee Benefits, Mary Ellen Signorille

Chicago-Kent Law Review

No abstract provided.

The Changing World Of Employee Benefits, Maria O'Brien Hylton

Chicago-Kent Law Review

The employee benefits picture, at least for many plan participants and some plan sponsors, is a scary and bleak one. The number of workers with pension coverage is declining, health insurance rates are rising much faster than the rate of inflation, and the number of uninsured continues to rise as well. The decline in union density, the recent boost given by the U.S. Supreme Court to Any Willing Provider ("AWP") laws, and the deluge of recent benefits-related scandals are also all part of this landscape. This Article examines each of these issues, with a focus on reforms that would increase …

The Cash Balance Controversy Revisited: Age Discrimination And Fidelity To Statutory Text, Edward A. Zelinsky

Faculty Articles

No abstract provided.

You Can't Take It With You: An Examination Of Employee Benefit Portability And Its Relationship To Job Lock And The New Psychological Contract, Katherine Elizabeth Ulrich

Hofstra Labor & Employment Law Journal

No abstract provided.

Employment Discrimination Claims Under Erisa Section 510: Should Courts Require Exhaustion Of Arbitral And Plan Remedies?, Jared A. Goldstein

Michigan Law Review

This Note examines whether courts should require section 510 claimants to exhaust either plan-based or arbitral remedies before seeking judicial relief. It begins by comparing the basis for an exhaustion requirement with respect to benefits claims with the basis for such a requirement with respect to statutory claims - like those under section 510. Part I examines the rationale courts have offered for requiring exhaustion of plan remedies for benefits claims. Part I concludes that federal courts have correctly determined that Congress intended individuals bringing benefits claims to exhaust the remedies provided by the plan before seeking judicial relief. Part …

Use It And Lose It: The Employer's Absolute Right Under Erisa Section 510 To Engage In Post-Claim Modifications Of Employee Welfare Benefit Plans, Carl A. Greci

Indiana Law Journal

No abstract provided.

A Contrasting View Of The Effect Of Foreign Competition On Labor Unionism In The United States, Charles R. Greer, Robert T. Rhodes

West Virginia Law Review

No abstract provided.

Labor In The Era Of Multinationalism: The Crisis In Bargained-For Fringe Benefits, Staughton Lynd, Alice Lynd

West Virginia Law Review

No abstract provided.

Pensions In Peril: Single Employer Pension Plan Terminations In The Context Of Corporate Bankruptcies, Mark Daniels

Hofstra Labor & Employment Law Journal

No abstract provided.

Post-Erisa Interpretation Of Pre-Erisa Pension Plans: Dissention Among The Circuits, Bradley H. Layne

West Virginia Law Review

No abstract provided.

Changing The Rules Of The Game: Pension Plan Terminations And Early Retirement Benefits, Dana M. Muir

Michigan Law Review

This Note examines whether early retirement benefits are included among the liabilities that an employer must satisfy before that employer can receive a reversion of excess assets. Part I reviews the background of plan terminations and how they affect early retirement benefits. It also discusses the general structure of ERISA. Part II examines the controversy surrounding whether ERISA's definition of "accrued benefits" includes early retirement benefits. ERISA requires that employees receive all of their accrued benefits before the employers receive any reversions. However, the circuits have disagreed as to whether early retirement benefits are accrued benefits and, therefore, covered by …

Controlled Group Liability Under The Multiemployer Pension Plan Amendments Act: Liability Without Limit, John R. Woodrum, Timothy B. Mcbride

West Virginia Law Review

No abstract provided.