The Pension Benefit Guaranty Corporation’s Valuation Regulation in Bankruptcy

Cleary Gottlieb partner James Bromley and associate Matthew Karlan authored an article with firm alumna Esther Lifshitz, “The Pension Benefit Guaranty Corporation’s Valuation Regulation in Bankruptcy: Entitled to Chevron Deference or Arbitrary and Capricious?” It will appear in the March 2018 edition of The University of Pennsylvania Journal of Business Law. The article explores the Pension Benefit Guaranty Corporation’s (PBGC) longtime use of a regulation to calculate the amount of the agency’s unfunded benefit liability claims in bankruptcies involving terminated pension plan disputes, discusses how this practice impacts the recoveries of other creditors and offers an argument for how the PBGC should change its policy.