OECD Working Papers on Insurance and Private Pensions
- Discontinued
- Is continued by :
- OECD Working Papers on Finance, Insurance and Private Pensions
- ISSN: 19936397 (online)
- https://doi.org/10.1787/19936397
Benefit Protection
Priority Creditor Rights for Pension Funds
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).
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