The bankruptcy filing date is the official date a bankruptcy case begins for a single-employer pension plan’s sponsor — and it determines key legal and pension protections.
The bankruptcy filing date (also called the bankruptcy petition date) is a critical milestone in both bankruptcy law and pension administration. It marks the exact date when a bankruptcy case is formally initiated by a company (or against a company) that sponsors a Single-Employer pension plan. This date matters because it triggers important rules used by the Pension Benefit Guaranty Corporation (PBGC), creditors, and courts to determine what benefits are protected and how pension obligations will be handled during the bankruptcy process.
What Is the Bankruptcy Filing Date?
In simple terms, the bankruptcy filing date is the day a company officially enters bankruptcy. For a pension plan sponsor, this date becomes a legal “cut-off point” that determines how pension benefits, liabilities, and assets will be evaluated.
This date is used to:
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Freeze certain financial obligations of the employer
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Identify which pension promises are protected by PBGC guarantee rules
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Determine whether the company’s underfunded pension may require termination
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Establish priority for creditors and employee claims
Because pension rules depend heavily on timing, even a single day can make a significant difference in how benefits are calculated.
Why the Bankruptcy Filing Date Matters for Pension Plans
When a company with a Single-Employer pension plan files for bankruptcy, the PBGC steps in to protect workers’ retirement benefits. The bankruptcy filing date helps the PBGC determine what benefits are guaranteed and what level of protection applies.
Here’s why that date matters:
1. Determining PBGC Benefit Guarantees
PBGC uses the bankruptcy filing date to set the maximum guaranteed benefit for participants.
For example:
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If you were already retired before the bankruptcy filing date, your benefit may be guaranteed up to a higher level.
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If you retire after the filing date, different guarantee limits may apply.
This timing affects how much of your future pension the PBGC will cover if the plan is terminated.
2. Establishing Employer Obligations and Funding Levels
The filing date signals when certain employer obligations may freeze or shift into court-managed processes. Pension funding requirements, contributions, or missed payments are evaluated differently before and after the filing date.
3. Prioritizing Claims in Bankruptcy
The bankruptcy filing date helps determine:
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Which debts are considered pre-petition (before bankruptcy)
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Which debts are post-petition (after bankruptcy)
Pension-related debts, such as unpaid contributions or plan shortfalls, are sorted based on this date and can affect how much retirees ultimately receive.
Simple Real-Life Example
Imagine a company called Silver Steel Manufacturing that sponsors a Single-Employer pension plan for 1,200 workers.
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On July 10, the company files for Chapter 11 bankruptcy.
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That July 10 date becomes the bankruptcy filing date.
Here’s how it matters:
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Employees who retired before July 10 may have more of their benefits guaranteed by PBGC.
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Employees planning to retire after July 10 might fall under different guarantee limits.
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Silver Steel’s unpaid contributions up to July 10 are treated as pre-bankruptcy debts.
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Any obligations arising after July 10 are managed under court supervision.
One date determines all of these outcomes — which is why the bankruptcy filing date is so important.
Why Timing Makes a Big Difference
Because PBGC guarantee rules rely heavily on the bankruptcy filing date, even small timing differences matter. If a company files on July 10 instead of August 1, the benefit protections for employees could look significantly different. Workers close to retirement often see the biggest impact, especially if their planned retirement date occurs after the filing.
Final Summary
The bankruptcy filing date is the exact day a company enters bankruptcy, and it plays a major role in determining how pension benefits under a Single-Employer plan will be handled. This date affects PBGC guarantee limits, employer obligations, participant protection, and the priority of pension-related claims. For anyone covered by a Single-Employer pension plan, understanding this date provides clarity on what benefits may be protected if their employer faces financial trouble.
When evaluating “what is the bankruptcy filing date,” remember the key idea: it is the starting point that shapes how pension benefits are treated during bankruptcy.
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