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Federal agency takes over pensions from large New York law firm during its bankruptcy

The Manhattan law firm Dewey & LeBoeuf recently filed for bankruptcy. Unfortunately, its pensions were underfunded by $80 million, according to a June 18, 2012 New York Law Journal article.

The Pension Benefit Guaranty Corporation (PBGC) is the federal agency taking over Dewey and LeBoeuf pensions. The PBGC will provide benefits to Dewey and LeBoeuf retirees (beginning at age 65) of up to $56,000 per year.

Under the agreement, legacy pensions, or pensions of employees who worked for the two firms that merged into Dewey and LeBoeuf in 2007 will be covered.

PBGC has concerns, though. Since they are an unsecured creditor, they would be paid back debts owed to them after the secured creditors, who hold liabilities against the firm.

If you are facing financial hardship or you are considering bankruptcy, it is important to seek out a qualified attorney. Jayson Lutzky, P.C. has over 29 years of experience practicing bankruptcy law. To set up a free consultation, call (800) 660-5299, or visit us onilne at www.BankruptcyNYC.com now.

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