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Active employees are grossly underrepresented on Chapter 11 creditors committee
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Posted on May 14 2012
Paul Joyce is the only active employee on the Chapter 11 Creditors Committee. There are seven total; six are current retirees.
The Fund has conflicting obligations to the retirees it must pay and to active members whose contributions it is duty-bound to protect. It cannot sacrifice one class of members to serve the other.
However, with only one member representing the active employees, it appears that they are in the position to do just that. According to 2009 actuarial report numbers, there are 2,996 active members versus 2,940 existing retirees. According to the Status of the Fund Report released in March 2012, there is roughly $113 million encumbered by a court order reserved for active employee contributions, and $143 million left in the Fund for payment to existing retirees.
The active employees are grossly misrepresented on the creditors committee.
Another issue: the creditors committee has the right to have an attorney represent them. However, with conflicting interests, how is one attorney supposed to represent all?
If you are an active employee reading this, please sign one of the petitions circulating urging the court to preserve your right to pull your money out of the fund.
Active Members Unite is a group formed to help you make your voice heard. Next meeting is May 22, 6:30pm. Tell 5 friends.
Mark Staal
As Matuis, Saipan
