Compliance June 7, 2011

PBGC Fighting Gift Basket Retailer’s Move to Dump Pensions

June 7, 2011 (PLANSPONSOR.com) - The Pension Benefit Guaranty Corporation (PBGC) is fighting a move by Harry & David Holdings Inc. to end the pensions of its 2,700 workers and retirees.
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In its filing for bankruptcy, the gift basket retailer asked for court approval to shed its pension plans (see Gift Basket Retailer Asks to Dump Pensions). However, PBGC said its financial analysis shows that the company will be able to emerge from bankruptcy without cutting off its workers’ pensions.    

The bankruptcy court will hold a hearing on the issue on July 22, 2011.   

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In a news release, the PBGC noted that if the pension plan is terminated, it will pay pension benefits to Harry & David employees, and because of limits set by law, some retirees might get reduced pensions. In addition, the PBGC does not insure health benefits at all.   

The retailer’s underfunded pensions include one for upper executives and a $27.4 million plan for current and former employees.
Deals and People June 7, 2011

James Delaplane to Join the Vanguard Group

June 7, 2011 (PLANSPONSOR.com) - Vanguard announced that James M. Delaplane, Jr. will join the investment management firm in September to lead its government affairs office in Washington, D.C.
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Delaplane will report to Ann L. Combs, Principal – Government Relations. The announcement stated that Delaplane will be responsible for representing Vanguard shareholders on a broad range of legislative and regulatory issues, from financial services reform to retirement and tax policies. 

Currently a partner at Davis & Harman, LLP, Delaplane has represented financial institutions, employers and public policy organizations on employee benefits, tax and financial services matters before the U.S. Congress and the federal executive branch agencies. He previously served as Vice President, Retirement Policy, for the American Benefits Council, a national association representing the employee benefits interests of major U.S. employers. From 1996 to 1998, he acted as legislative counsel to U.S. Rep. Earl Pomeroy (D-North Dakota) and as the chief staff person on retirement, health and related tax matters.  

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Delaplane received his B.A., cum laude, from Harvard University in 1989, and his J.D., cum laude, in 1995, from the Harvard Law School. He is a member of the District of Columbia and Pennsylvania Bar Associations.  

“Jamey Delaplane is a leading and well-respected policy expert, and we look forward to adding his experience, perspective, and understanding of the investment management industry to our government affairs team,” said Vanguard CEO Bill McNabb, in the announcement. “Jamey will be the ‘point person’ on many issues facing the industry today and will serve as a highly capable advocate for Vanguard and our clients.”  

  

-Sara Kelly 

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