An Analysis of the Treatment of Employee Pension and Wage Claims in Insolvency and Under Guarantee Schemes in OECD Countries: Comparative Law Lessons for Detroit and the United States

ABSTRACT: To put the plight of the Detroit city employees into an international and comparative context when it comes to considering how their pension and wage claims should be treated in bankruptcy, it is instructive to consider how similar employee pension and wage claims would be treated in corporate insolvencies in other countries.

 

Detroit’s Pitch for a Pension Pinch

Detroit’s bankruptcy case has shaken up the bond market. The writing is on the wall: Detroit will probably succeed in reducing its pension obligations. In hopes of restructuring its debt, Detroit filed a bankruptcy case under Chapter 9 of the Bankruptcy Code. Chapter 9 follows the familiar path of Chapter 11 in many ways, but Detroit will face several unique challenges as it attempts to apply some of the Bankruptcy Code’s hallmark provisions.

Choice Blindness in Financial Decision-Making

ABSTRACT: Choice Blindness is an experimental paradigm that examines the interplay between individuals’ preferences, decisions, and expectations by manipulating the relationship between intention and choice. This paper expands upon the existing Choice Blindness framework by investigating the presence of the effect in an economically significant decision context, specifically that of pension choice.

Modifying or Terminating Pension Plans Through Chapter 9 Bankruptcies With a Focus on California

ABSTRACT: When Stockton, California, a city of just under 300,000 people, filed for Chapter 9 protection on June 28, 2012, 1 it became the largest U.S. city by population to do so. 2 Like other municipalities, Stockton has been greatly affected by the collapse of the sub-prime lending market from 2007 to 2008. 3 Stockton, however, was disproportionately affected because of its location in the Central Valley region of California, an attractive location for those who want to live near the Bay area, with one out of every thirty homes in foreclosure.