Pension Benefit Guaranty Corp. v. Broadway Maintenance Corp.
This case involves the Pension Benefit Guaranty Corporation (PBGC) and the bankrupt Broadway Maintenance Corporation (Broadway) disputing the termination date of Broadway's non-union employee pension plan. PBGC initiated the lawsuit to become the statutory trustee and sought to establish March 26, 1981, as the termination date. Broadway argued for an earlier, retroactive date. The court, guided by ERISA and the interests of the plan participants, rejected both parties' proposed dates. The judge formulated a test for involuntary terminations and ultimately established December 5, 1980, as the official termination date, citing the date PBGC first formalized its intent to terminate the plan.