113 S2418 IS: Bankruptcy Fairness and Employee Benefits Protection Act of 2014
U.S. Senate
2014-06-03
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.
(a)This Act may be cited as the Bankruptcy Fairness and Employee Benefits Protection Act of 2014
.
(b)The table of contents for this Act is as follows:Sec. 1. Short title.
TITLE I—Fairness for employees and retirees in corporate bankruptcies
Sec. 101. Prohibition of unfair reductions to employee and retiree benefits.
Sec. 102. Payment of insurance benefits to retirees.
Sec. 103. Fair treatment of compensation.
Sec. 104. Venue; change of venue.
Sec. 105. Protection of benefits in chapter 9 bankruptcy.
Sec. 106. Requirement to make pension contributions.
TITLE II—Protection of employee and retiree health benefits
Sec. 201. Notification of extent to which health benefits can be modified or terminated.
Sec. 202. Protection of retirees under certain collectively bargained agreements.
Sec. 203. Comptroller General report.
<enum>I</enum><header>Fairness for employees and
retirees in corporate bankruptcies</header>
<section id="idE69F59202E864ECAA19D9CE18875085D"><enum>101.</enum><header>Prohibition of unfair reductions to employee and retiree benefits</header>
<subsection id="id3A81C5402EC340329CE7FFB57379997F"><enum>(a)</enum><header>Collective
bargaining agreements</header><text><external-xref legal-doc="usc" parsable-cite="usc/11/1113">Section 1113</external-xref> of title 11, United States
Code, is amended—</text>
<paragraph id="id67153E02E75441C99C0BDAFAE673CC2E"><enum>(1)</enum><text>in subsection
(b)—</text>
<subparagraph id="id8631CAC6DAD245599C9BED375FA916F0"><enum>(A)</enum><text>in paragraph
(1)(A), by striking <quote>necessary modifications in the employees benefits and protections that are necessary to permit the
reorganization of the
debtor</quote> and insert <quote>minimum modifications in the employees benefits and protections that are necessary to prevent the
liquidation of the
debtor</quote>; and</text>
</subparagraph><subparagraph id="idD41102D9F4074FDEB97FED63088C4C35"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idEEA75F4793AE4C8996FB90AB02CA1DE6" style="OLC">
<paragraph id="idB20E8145830A43A2AC8662E5EB57F70D"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id8944738AE8EA4AC2A41FDBAB8DB890FC"><enum>(A)</enum><text>If the proposal made
under paragraph (1) provides for a modification of the health
insurance
benefits of employees of the debtor, the proposal shall provide for
a
modification of the health insurance benefits of officers and
directors of the
debtor—</text>
<clause id="idCCD714269BC7437F8A2DEA5031A22473" indent="up1"><enum>(i)</enum><text>to, at a minimum, be comparable to the modification of health insurance benefits of
employees of the debtor; and</text>
</clause><clause id="id66FD28622EDC4BE396E5360928E6E880" indent="up1"><enum>(ii)</enum><text>such that the health insurance
benefits of officers and directors are not more generous than those
of employees
of the debtor.</text>
</clause></subparagraph><subparagraph id="id5853E6CBA1574C10BEDF23F185B77529" indent="up1"><enum>(B)</enum><text>If the proposal made under paragraph
(1) provides for a modification of any benefit of employees of the
debtor other
than health insurance benefits, including wages and pension
benefits, the
proposal shall provide for a modification of such benefit of
officers and
directors of the debtor that is, at a minimum, in an amount equal
to the percentage by
which such
benefit of employees of the debtor was
modified.</text>
</subparagraph></paragraph><after-quoted-block>; </after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="idE970AB0D42F7414A9499EB8B7FAE3B87"><enum>(2)</enum><text>in subsection
(c)—</text>
<subparagraph id="id1D6A322C5821445EB602A8435B95D83A"><enum>(A)</enum><text>in paragraph (1),
by striking <quote>subsection (b)(1)</quote> and inserting <quote>paragraphs
(1) and (3) of subsection (b)</quote>;</text>
</subparagraph><subparagraph id="id293DFAF0924D47FA828F68AFB69ADC9F"><enum>(B)</enum><text>by redesignating
paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and</text>
</subparagraph><subparagraph id="id7FBD0BE85B7D4304B5F48BB88F0C1452"><enum>(C)</enum><text>by inserting
after paragraph (1) the following:</text>
<quoted-block display-inline="no-display-inline" id="id852A76835EA44E46B9081E1F506BAD57" style="OLC">
<paragraph id="idA37AB3DF6F7B46778A50047611B4725B"><enum>(2)</enum><text>the debtor
established by clear and convincing evidence that any modification
of the
benefits and protections of an employee of the debtor proposed
under subsection (b)(1) is the minimum modification necessary to prevent
the
liquidation of the
debtor;</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id2A1D93D96EC44DEC8D5AD0C515CD6E38"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id0AFAD301527C49C78900C658156E8D5B" style="OLC"><subsection id="id9774FB172A5F42DF8D93965F3A66FEBB"><enum>(g)</enum><text>The rejection of a collective bargaining agreement
under this
section constitutes a breach of the agreement, and shall entitle
employees of
the debtor to a claim for
damages.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idC46D1344038F4726A69F18F5F14B8403"><enum>(b)</enum><header>Health
insurance benefits of retired employees</header><text><external-xref legal-doc="usc" parsable-cite="usc/11/1114">Section 1114</external-xref> of title 11,
United States Code, is amended—</text>
<paragraph id="idA173DA19C8CC4F9CA85396998472E1CD"><enum>(1)</enum><text>in subsection
(f)—</text><subparagraph id="idE66041EE56B94B3F81231B4F0851781D"><enum>(A)</enum><text>in paragraph (1)(A), by striking <quote>necessary modifications in the retiree benefits that are necessary to permit the
reorganization of the
debtor</quote> and insert <quote>minimum modifications in the retiree benefits that are necessary to prevent the
liquidation of the
debtor</quote>; and</text></subparagraph><subparagraph id="idEDFB8E3FE967498ABB1E416CDAFE1527"><enum>(B)</enum><text>by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idC7A2165737CA4C8AA790174602293721" style="OLC">
<paragraph id="id520D5BE9459A4037814E9972C341D216" indent="up1"><enum>(3)</enum><text>If the proposal
made under paragraph (1) provides for a modification of the health
insurance
benefits of retired employees of the debtor, the proposal shall
provide for a
modification of the health insurance benefits of officers and
directors of the
debtor—</text>
<subparagraph id="id52E6171E476B4667AA782C51F70993A7"><enum>(A)</enum><text>to, at a minimum, be comparable
to the modification of health insurance benefits of retired
employees of the debtor; and</text>
</subparagraph><subparagraph id="id5947927BA7C043F7BF685EE64A75A83D"><enum>(B)</enum><text>such that the
health insurance benefits of officers and directors are not more
generous than
those of retired employees of the
debtor.</text>
</subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id7A946E2B12A54E6CAA6DAF709FE87A90"><enum>(2)</enum><text>in subsection (g)(3), by striking <quote>necessary to permit the reorganization of the debtor</quote> and insert <quote>the minimum modification necessary to prevent the liquidation of the debtor</quote>.</text>
</paragraph></subsection></section><section id="id194FF528894F4869924E97981B1F88A1"><enum>102.</enum><header>Payment of
insurance benefits to retirees</header>
<subsection id="IDF9300AFCB605484FB23130B560C8D699"><enum>(a)</enum><header>In
general</header><text><external-xref legal-doc="usc" parsable-cite="usc/11/1114">Section 1114(j)</external-xref> of title 11, United States Code, is
amended to read as follows:</text>
<quoted-block id="ID6DBC5B22BFFD477E0069B24013832F8F">
<subsection id="IDFB9F1B3A256048BDA040AAA8D257CFDB"><enum>(j)</enum><paragraph commented="no" display-inline="yes-display-inline" id="ID7D66D613D57D4433834596F6EBA2A208"><enum>(1)</enum><text>No claim for retiree
benefits shall be limited by section 502(b)(7).</text>
</paragraph><paragraph id="ID5E6AE537F2AF4C1A9111B734734D686E" indent="up1"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="ID1333B0015036485EBABB2F192289206F"><enum>(A)</enum><text>A retired employee
whose retiree benefits are modified under subsection (e)(1) or (g)
shall have a
claim in an amount equal to the value of the retiree benefits lost
as a result
of the modification, which shall be reduced by the amount paid by a
debtor
under subparagraph (B).</text>
</subparagraph><subparagraph id="ID773278D6B3BA46ECA44586EFF102FC63" indent="up1"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="ID55E9735D4E2F44389BEA33B48E6C4CE9"><enum>(i)</enum><text>In accordance with
section 1129(a)(13)(B), a debtor shall pay a retired employee with
a claim
under subparagraph (A)—</text>
<subclause id="id3944CB3FC6D44AC7A1FBBE95B64AC458" indent="up1"><enum>(I)</enum><text>cash in an amount equal to the 2-year
cost of premiums for continuation coverage (as defined in section
602 of the
<act-name parsable-cite="ERISA">Employee Retirement Income Security Act of
1974</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/29/1162">29 U.S.C. 1162</external-xref>)) for the retired employee under section 602(3)
of the <act-name parsable-cite="ERISA">Employee Retirement Income Security Act
of 1974</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/29/1162">29 U.S.C. 1162(3)</external-xref>); or</text>
</subclause><subclause commented="no" id="ID3BCB47F81E424BDE96FBADEABCEAA795" indent="up1"><enum>(II)</enum><text>if the retired employee is not
eligible for continuation coverage, cash in an amount equal to the
2-year cost
of premiums for a comparable health insurance plan offered through
a State
Exchange, Federally Facilitated Exchange, or Federal-State
Partnership Exchange
established under the Patient Protection and
Affordable Care
Act (<external-xref legal-doc="usc" parsable-cite="usc/42/18001">42 U.S.C. 18001 et seq.</external-xref>).</text>
</subclause></clause><clause commented="no" id="id650AB09BBA4F4331860EE378A4237B29" indent="up1"><enum>(ii)</enum><text>Notwithstanding clause (i), if the
court determines it to be in the interest of fairness and equity,
the court may
require a debtor to pay a retired employee with a claim under
subparagraph (A)
cash in an amount equal to the cost of premiums for continuation
coverage under
clause (i)(I) or for a comparable health insurance plan under
clause (i)(II) for a period of more than 2 years.</text>
</clause><clause commented="no" id="idDD2B8CB795604B85954FAFD72B57E3A1" indent="up1"><enum>(iii)</enum><text>The amount paid by a debtor under
this subparagraph shall not exceed the amount of the claim under
subparagraph
(A).</text>
</clause></subparagraph><subparagraph id="ID112AE105D06649228822B1452D7B0036" indent="up1"><enum>(C)</enum><text>Any amount of the claim under
subparagraph (A) that is not paid under subparagraph (B) shall be a
general
unsecured
claim.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idADF0EA6313F74D7198BE67BA359B1C24"><enum>(b)</enum><header>Confirmation of
plan</header><text><external-xref legal-doc="usc" parsable-cite="usc/11/1129">Section 1129(a)(13)</external-xref> of title 11, United States Code, is
amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idC071BE4176214719B49D7B13E311B6B0" style="OLC">
<paragraph id="ID7931E46A5AE44985BB900000C04496DF"><enum>(13)</enum><text>The plan
provides—</text>
<subparagraph id="IDD019E2BBAB2B434DAEE46817D4E8CBD9"><enum>(A)</enum><text>for the
continuation, after the effective date of the plan, of the payment
of all
retiree benefits (as defined in section 1114(a)), at the level
established
pursuant to subsection (e)(1) or (g) of section 1114, at any time
before the
confirmation of the plan, for the duration of the period the debtor
has
obligated itself to provide such benefits; and</text>
</subparagraph><subparagraph id="ID41270BA0CAA144DD9469DC22AA6DD952"><enum>(B)</enum><text>that the holder
of a claim under section 1114(j)(2)(A) shall receive from the
debtor, on the
effective date of the plan, cash equal to the amount calculated
under section
1114(j)(2)(B).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section><section id="id0E0618144D8548A084143C22A0B15FF0"><enum>103.</enum><header>Fair treatment
of compensation</header>
<subsection id="id4152D02A0A37465FB420466B6805A459"><enum>(a)</enum><header>Prohibition of
bonus payments</header><text display-inline="yes-display-inline">Section 503(c)
of title 11, United States Code, is amended—</text>
<paragraph id="idDAF0A5C3E9C446AD8C9D193C5F284033"><enum>(1)</enum><text>in paragraph (2)(B),
by striking <quote>or</quote> at the end;</text>
</paragraph><paragraph id="idE95C5C2F825D44C1A599CE2EEEC95E29"><enum>(2)</enum><text>by redesignating
paragraph (3) as paragraph (4); and</text>
</paragraph><paragraph id="idA10DDAEA9DD34C9F876272F819C3A1F0"><enum>(3)</enum><text>by inserting
after paragraph (2) the following:</text>
<quoted-block display-inline="no-display-inline" id="idC718E54402554C3584A10673ECF539C3" style="OLC">
<paragraph id="id03AAFD8ACE9C474A900B82C0A0FC3E25"><enum>(3)</enum><text>a bonus payment
to an insider of the debtor, including an incentive-based bonus
payment;
or</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="id439D83C01266474CB64909733D88B329"><enum>(b)</enum><header>Increased
priority claim amount for employee wages and benefits</header><text>Section
507(a) of title 11, United States Code, is amended—</text>
<paragraph id="id3D05FBC7F06C42BFB7717CD1CBC7190F"><enum>(1)</enum><text>in paragraph (4)—</text><subparagraph id="idFC06CE83D417419C85FBEED8384DE49A"><enum>(A)</enum><text>by striking
<quote>$10,000</quote> and inserting <quote>$25,000</quote>; and</text>
</subparagraph><subparagraph id="id9C21A4A97CF84A4898B59773CF028C63"><enum>(B)</enum><text>by striking
<quote>180 days</quote> and inserting <quote>1 year</quote>; and</text>
</subparagraph></paragraph><paragraph id="idBEF0A09E341441569083554A9E07F320"><enum>(2)</enum><text>in paragraph (5)—</text><subparagraph id="id00F3432F95664A789A39F9646C604314"><enum>(A)</enum><text>in subparagraph (A), by striking <quote>180 days</quote> and inserting <quote>1 year</quote>; and</text></subparagraph><subparagraph id="id1ABC374B9C2C4AE690543F874A26C506"><enum>(B)</enum><text>in subparagraph (B)(i), by striking <quote>$10,000</quote> and inserting <quote>$25,000</quote>.</text></subparagraph></paragraph></subsection><subsection id="idEF6E57F13DBB4001B0C6F8AA68DDD428"><enum>(c)</enum><header>Recovery of
excess compensation</header><text><external-xref legal-doc="usc" parsable-cite="usc/11/547">Section 547</external-xref> of title 11, United States Code,
is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id7360D5857B5B4601AEDDEF9A938F3730" style="OLC">
<subsection id="idE97698B0CFA44FBCB522B6FF37398698"><enum>(j)</enum><text>The court, upon
motion of a party in interest, may prohibit a transfer of
compensation made to
an insider of the debtor within 1 year before the date on
which the
petition is filed if the court finds, after notice and hearing,
that the
transfer—</text>
<paragraph id="id9BD459AF648944EB9A00CACECF97818B"><enum>(1)</enum><text>was not made in
the ordinary course of business; or</text>
</paragraph><paragraph id="idD34BAC718B02474C8BB416616B301FDB"><enum>(2)</enum><text>resulted in
unjust
enrichment.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="idA4AD20E5814545F5ACF713A57C8BF8CE"><enum>104.</enum><header>Venue; change
of venue</header><text display-inline="no-display-inline">Chapter 87 of title
28, United States Code, is amended—</text>
<paragraph id="id411C2B7A52D244B199B9AB2B13E47B84"><enum>(1)</enum><text>by amending
section 1408 to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id08F71675A8C24FB0A587811AC51FFBB8" style="USC">
<section id="id171EE6F0B9F5498A9C49A23F8B783B88"><enum>1408.</enum><header>Venue of
cases under title 11</header>
<subsection id="idDB4D82CD9E024AC59D11507CA4C9981B"><enum></enum><text>Except as
provided in section 1410, a case under title
11 shall be
commenced in the district court for the district in which the
largest share of
employees, retired employees, physical assets, and operations of
the person or
entity that is the subject of the case were located in the
year immediately
preceding the commencement of the case.</text>
</subsection></section><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id07BB849B5AE64E83ABC6BC1E078A698B"><enum>(2)</enum><text>in section 1412,
by striking <quote>to a district court for another district</quote> and
inserting <quote>to the district court for the district in which the principal
place of business in the United States of the person or entity that is the
subject of the case was located in the year immediately preceding
the
commencement of the case</quote>.</text>
</paragraph></section><section id="id6995E5F1A39B4431A5E5AA6CD2073BA3"><enum>105.</enum><header>Protection of
benefits in chapter 9 bankruptcy</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/11/901">Section 901(a)</external-xref> of title 11, United States
Code, is amended—</text>
<paragraph id="id82202239F93D49E583E3A3C75F0E9353"><enum>(1)</enum><text>by inserting
<quote>507(a)(4), 507(a)(5),</quote> after <quote>507(a)(2)</quote>;</text>
</paragraph><paragraph id="id78A0CBCD49D345E392C1D0699B00C141"><enum>(2)</enum><text>by inserting
<quote>1113, 1114,</quote> after <quote>1111(b)</quote>; and</text>
</paragraph><paragraph id="id16C3A6B1E1254802A9BBA30C37D8976A"><enum>(3)</enum><text>by inserting <quote>1129(a)(13),</quote> after <quote>1129(a)(10)</quote>.</text></paragraph></section><section id="id8A3A486CE07A4E33AA2F32570E98934D"><enum>106.</enum><header>Requirement to make pension contributions</header><subsection id="id5ADD0A22CB0840E4B718D56C5779F418"><enum>(a)</enum><header>Requirement To pay minimum funding contributions</header><text>Subchapter I of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/11/11">chapter 11</external-xref> of title 11, United States Code, is amended by adding at the end the
following:</text><quoted-block display-inline="no-display-inline" id="idE9CC9C0F98D74687BC2FED48D4DC2085" style="USC"><section id="idD3B802E69BF64CC69E4C8BF4299D2D79"><enum>1117.</enum><header>Duty of debtor in possession to make required pension contributions</header><subsection id="idBF0C3DAD6C2D4190ABD1E2634537FD4F"><enum>(a)</enum><header>Definitions</header><text>In this section—</text><paragraph id="id8175318229494C2DB83B15146DEA66E9"><enum>(1)</enum><text>the term <term>pension plan</term> has the meaning given that term under section 3 of the Employee Retirement Income Security Act of
1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1002">29 U.S.C. 1002</external-xref>); and</text></paragraph><paragraph id="id9B353C2B8ABF4527AEDA1C491BBAA88D"><enum>(2)</enum><text>the term <term>required pension contributions</term> means contributions necessary to satisfy the minimum funding standards under sections 412 and 430
of the Internal Revenue Code of 1986 and sections 302 and 303 of the
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1082 and 1083),
including any required installment contributions.</text></paragraph></subsection><subsection id="id4FB7A15D73974DFD9A48E5F47BF71446"><enum>(b)</enum><header>Requirement</header><text>A debtor in possession that sponsors a pension plan or is a member of the controlled group with
respect to such a plan, or the trustee of the debtor in possession, shall—</text><paragraph id="id06F7E176C8A148E4B2B9404C192EFA9A"><enum>(1)</enum><text>make all required pension contributions to the pension plan that become due after the filing of the
petition; and</text></paragraph><paragraph id="id2950F59C1B324887BB8C39209F2AE1B6"><enum>(2)</enum><text>make such contributions on or before the due dates specified in section 430(j) of the
Internal Revenue Code and section 303(j) of the Employee Retirement Income
Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1083">29 U.S.C. 1083(j)</external-xref>).</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="idA19C39E6886C4E98BC2970FCF61684A4"><enum>(b)</enum><header>Treatment as administrative expenses</header><text><external-xref legal-doc="usc" parsable-cite="usc/11/503">Section 503(b)</external-xref> of title 11, United States Code, is amended—</text><paragraph id="idA6604464D1034A6DA767F0D0CE574CF5"><enum>(1)</enum><text>in paragraph (8)(B), by striking <quote>and</quote> at the end;</text></paragraph><paragraph id="idEDF58E536E924D1CA6B8CFD0A3EFCF90"><enum>(2)</enum><text>in paragraph (9), by striking the period at the end and inserting <quote>; and</quote>; and</text></paragraph><paragraph id="id3453DD0DAE154F4DB1626C93EACEB437"><enum>(3)</enum><text>by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="idFE5FBC76A76D4F01A2BD9F4495ED74A9" style="OLC"><paragraph id="id565951E1CDCD4C25901FAC01D1BD15B8"><enum>(10)</enum><text>any required pension contributions under section 1117 due to be made after the filing of the
petition that are unpaid.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="id5BEE605900854C6AAB373D2557CC042D"><enum>(c)</enum><header>Perfection of statutory liens for missed pension contributions</header><text><external-xref legal-doc="usc" parsable-cite="usc/11/362">Section 362(b)</external-xref> of title 11, United States Code, is amended—</text><paragraph id="idC73EB76197464063985506E5EBFD5924"><enum>(1)</enum><text>in paragraph (27), by striking <quote>and</quote> at the end;</text></paragraph><paragraph id="idAC745EC561854CB3AAB3B5EC483CD33B"><enum>(2)</enum><text>in paragraph (28), by striking the period at the end and inserting <quote>; and</quote>; and</text></paragraph><paragraph id="id1FB458E1667F47CB8D280A6C005E89DB"><enum>(3)</enum><text>by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="idD20A3D09156B469E82D2C8825A9915F7" style="OLC"><paragraph id="id774F0A1154D147D788C794DD5DA47CF1"><enum>(29)</enum><text>under subsection (a), of any act to perfect, or to maintain or continue the perfection of, a
statutory lien imposed by section 430(k) of the Internal Revenue Code of
1986 or section 303(k) of the Employee Retirement Income Security Act (29
U.S.C. 1083(k)) (which shall not be voidable under section 545 of this
title), for failure to make contribution payments required under those
sections, without regard to whether such contributions became due or
whether such lien arose before or after the filing of the petition.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section><enum>II</enum><header>Protection of employee and retiree health
benefits</header>
<section id="id6EA857D1D79647FA8509948AADD73CD6"><enum>201.</enum><header>Notification of extent to which health benefits can be modified or terminated</header><subsection id="id1021C497DA894A048D41640FC8683023"><enum>(a)</enum><header>Inclusion in summary plan description</header><text>Section 102(b) of the Employee Retirement Income Security Act of 1974 (29 U.S.C.
1022) is amended by inserting <quote>; in the case of a group health plan (as so defined), whether the provisions of the plan permit the
plan sponsor or any employer participating in the plan to unilaterally
modify or terminate the benefits under the plan with respect to employees,
retired employees, and beneficiaries, and when and to what extent benefits
under the plan are
fully vested with respect to employees, retired employees, and
beneficiaries</quote> after <quote>the name and address of such issuer</quote>.</text></subsection><subsection id="id1C47A62F34BF41D79E020B739F29495F"><enum>(b)</enum><header>Presumption that retired employee health benefits cannot be modified or terminated</header><text>Section 502 of the Employee Retirement Income Security Act of 1974 (29 U.S.C.
1132) is amended by adding at the end the following new subsection:</text><quoted-block act-name="" id="idD90D6A316D8D45E3820200AA600C3298" style="OLC"><subsection id="id05F7F47DDBA84A0ABAB1A2EE2EC1D0DA"><enum>(n)</enum><text>In the case of a suit brought under this title by a participant or beneficiary relating to benefits
of a retired employee or the dependents of a retired employee under a
group health plan (as defined in section 733(a)(1)), the presumption for
purposes of such suit shall be that as of the date an employee retires or
completes 20 years of service with the employer, benefits
available under the plan during retirement of the employee are fully
vested and cannot be modified or terminated for the life of the employee
or, if longer, the life of the employee's spouse. This presumption can be
overcome only upon a showing, by clear and convincing evidence, that the
terms of the group health plan allow for a modification or termination of
benefits available under the plan and that the employee, prior to becoming
a participant in the plan, was made aware, in clear and unambiguous terms,
that the plan allowed for such modification or termination of benefits.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="idEEC415F1C6B14B039E831D30E0ACAB0D"><enum>202.</enum><header>Protection of
retirees under certain collectively bargained agreements</header><text display-inline="no-display-inline">Section 8 of the National Labor Relations
Act (<external-xref legal-doc="usc" parsable-cite="usc/29/158">29 U.S.C. 158</external-xref>) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id9835F73681E84B08908A3A25CEB7C865" style="OLC">
<subsection id="id597BC7C9FC794EF7922FBCFF1F8B1790"><enum>(h)</enum><text>It shall be an
unfair labor practice for any labor organization and any employer
to enter into
any contract or agreement, express or implied, whereby the
organization and
employer agree to modify the terms of any previous agreement in a
manner that
would result in a reduction or termination of retiree health
insurance benefits provided to an employee or a dependent of an employee
under the previous agreement, if such modification of the terms of the
previous agreement occurs after the date
on which the employee retires.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idF2914B49BC1E4359BC9D0648CAFD8B04"><enum>203.</enum><header>Comptroller
General report</header>
<subsection id="idF3D4490E0D8349AA9AD62382F6999240"><enum>(a)</enum><header>In
general</header><text>Not later than 180 days
after the date of enactment of this Act, the Comptroller General of the
United
States shall submit to Congress a report on the strategies that
corporations
use to avoid obligations to pay promised employee and retiree benefits.</text>
</subsection><subsection id="id811CDC6AF003495693EA5AA8787290C5"><enum>(b)</enum><header>Contents</header><text>The
report under subsection (a) shall include a discussion of—</text>
<paragraph id="id518C0435E2F14A0F8EA99B95360CD865"><enum>(1)</enum><text>the use of
spin-offs, mergers, subsidiaries, bankruptcies, asset sales, and other
strategies to avoid obligations to pay promised employee and retiree
benefits;</text>
</paragraph><paragraph id="idAB7F6950630A4274B4502961E42B732C"><enum>(2)</enum><text>the impact of
such avoidance on the financial, physical, and mental well-being of
employees
and retirees;</text>
</paragraph><paragraph id="id716A30BECCAA435F8C1CCCC39FFB7581"><enum>(3)</enum><text>the impact on
Federal and State budgets when employers terminate or reduce the benefits
of
employees and retirees, including the costs that are incurred when
employees and retirees seek
assistance from Federal and State government programs and services as a
result of the termination or reduction of their employment-related
benefits; and</text>
</paragraph><paragraph id="id2976E65DB61249AC9A91663A468F86F0"><enum>(4)</enum><text>recommendations
to prevent corporations from evading contractual obligations to pay
employee
and retiree benefits.</text>
</paragraph></subsection></section>