Public Plan Fiduciaries Battling the Federal Government

From a Press Release:

Indiana Treasurer Richard Mourdock announced that two state pension funds have filed with the US Bankruptcy Court presiding over Chryslers Chapter 11 case objecting to the proposed sale of substantially all of Chryslers assets and seeking the appointment of a trustee to protect their security interests and property rights. Indiana was the sole creditor to file objections with the court. . .

“As fiduciaries, we can’t allow our retired police officers and teachers to be ripped off. . . “

You can view the documents filed in the case here.

See also this article from Bloomberg: “Chrysler Sale Appeal Will Bypass a Court to Save Time.”

[While these plans are governmental plans not subject to ERISA, if Indiana has laws which would impose fiduciary responsibility on fiduciaries of government plans similar to ERISA (as many states do), then these fiduciaries would have no choice but to file their objections if their plans’ rights are not being protected in accordance with the law.]

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