[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2511 Introduced in Senate (IS)]

113th CONGRESS
  2d Session
                                S. 2511

To amend the Employee Retirement Income Security Act of 1974 to clarify 
         the definition of substantial cessation of operations.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 19, 2014

  Mr. Harkin (for himself and Mr. Alexander) introduced the following 
  bill; which was read twice and referred to the Committee on Health, 
                     Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
To amend the Employee Retirement Income Security Act of 1974 to clarify 
         the definition of substantial cessation of operations.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SUBSTANTIAL CESSATION OF OPERATIONS.

    (a) In General.--Subsection (e) of section 4062 of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1362) is amended--
            (1) by striking ``Operations.--If an employer'' and 
        inserting ``Operations.--
            ``(1) In general.--If an employer''; and
            (2) by adding at the end the following:
            ``(2) Substantial cessation of operations.--An employer 
        shall not be treated as having a cessation described in 
        paragraph (1) unless--
                    ``(A) all operations at a facility in a location 
                are ceased, and--
                            ``(i) such cessation is reasonably expected 
                        to be permanent;
                            ``(ii) no portion of such operations is 
                        moved to another facility at a different 
                        location;
                            ``(iii) no portion of such operations is 
                        assumed by or otherwise transferred to another 
                        employer; and
                            ``(iv) no other operations are reasonably 
                        expected to be maintained at such facility; and
                    ``(B) as a result of the cessation described in 
                subparagraph (A), more than 20 percent of the employees 
                of the employer have a termination of employment that 
                is reasonably expected to be permanent.
        For purposes of subparagraph (B), all employees treated as 
        employed by a single employer under sections 210 (c) and (d) 
        shall be treated as employees of the employer.''.
    (b) Direction to the Corporation.--The Pension Benefit Guaranty 
Corporation shall not take any enforcement, administrative, or other 
action pursuant to section 4062(e) of the Employee Retirement Income 
Security Act of 1974 that is inconsistent with subparagraph (A) of 
section 4062(e)(2) of such Act, as added by subsection (a), without 
regard to whether the action relates to a cessation or other event that 
occurs before or after the date of enactment of this Act, unless such 
action is in connection with a settlement agreement in place before 
June 1, 2014.
                                 <all>