,,ii  #aacth ,,congress  #b;d ,session  
,s4 #bdah  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,june #c1 #bjad
 ,mr4 ,rockefeller 7for himself and ,ms4
 ,warren7 introduced the following bill2
 which was read twice and referred to   
the ,committee on the ,judiciary  ,a    
,,bill  ,to amend title #aa and title   
#bi1 ,united ,states ,code1 to increase 
the amount of unsecured claims for      
salaries and wages given priority in    
bankruptcy1 to provide for payments to  
retirees to compensate for lost health  
insurance benefits resulting from the   
bankruptcy of their former employer1 to 
protect the health benefits of employees
 and retirees1 and for other purposes4  
#a4 ,short title  7a7 ,short title ,this
 ,act may be cited as the ,bankruptcy   
,fairness and ,employee ,benefits       
,protection ,act of #bjad4  7b7 ,table  
of contents ,the table of contents for  
this ,act is as follows3 ,sec4 #a4      
,short title4 ,,title ,i--,fairness for 
employees and retirees in corporate     

bankruptcies ,sec4 #aja4 ,prohibition of
 unfair reductions to employee and      
retiree benefits4 ,sec4 #ajb4 ,payment  
of insurance benefits to retirees4 ,sec4
 #ajc4 ,fair treatment of compensation4 
,sec4 #ajd4 ,venue2 change of venue4    
,sec4 #aje4 ,protection of benefits in  
chapter #i bankruptcy4 ,sec4 #ajf4      
,requirement to make pension            
contributions4 ,,title ,,ii--,protection
 of employee and retiree health benefits
 ,sec4 #bja4 ,notification of extent to 
which health benefits can be modified or
 terminated4 ,sec4 #bjb4 ,protection of 
retirees under certain collectively     
bargained agreements4 ,sec4 #bjc4       
,comptroller ,general report4  ,i       
,fairness for employees and retirees in 
corporate bankruptcies  #aja4           
,prohibition of unfair reductions to    
employee and retiree benefits  7a7      
,collective bargaining agreements       
,section #aaac of title #aa1 ,united    
,states ,code1 is amended--  7#a7 in    
subsection 7b7--  7,a7 in paragraph     

7#a77;,a71 by striking necessary        
modifications in the employees benefits 
and protections that are necessary to   
permit the reorganization of the debtor 
and insert minimum modifications in the 
employees benefits and protections that 
are necessary to prevent the liquidation
 of the debtor2 and  7,b7 by adding at  
the end the following3  7#c7 7,a7 ,if   
the proposal made under paragraph 7#a7  
provides for a modification of the      
health insurance benefits of employees  
of the debtor1 the proposal shall       
provide for a modification of the health
 insurance benefits of officers and     
directors of the debtor--  7i7 to1 at a 
minimum1 be comparable to the           
modification of health insurance        
benefits of employees of the debtor2 and
  7ii7 such that the health insurance   
benefits of officers and directors are  
not more generous than those of         
employees of the debtor4  7,b7 ,if the  
proposal made under paragraph 7#a7      
provides for a modification of any      

benefit of employees of the debtor other
 than health insurance benefits1        
including wages and pension benefits1   
the proposal shall provide for a        
modification of such benefit of officers
 and directors of the debtor that is1 at
 a minimum1 in an amount equal to the   
percentage by which such benefit of     
employees of the debtor was modified4  2
  7#b7 in subsection 7c7--  7,a7 in     
paragraph 7#a71 by striking subsection  
7b77#a7 and inserting paragraphs 7#a7   
and 7#c7 of subsection 7b72  7,b7 by    
redesignating paragraphs 7#b7 and 7#c7  
as paragraphs 7#c7 and 7#d71            
respectively2 and  7,c7 by inserting    
after paragraph 7#a7 the following3     
7#b7 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 7b77#a7 is   
the minimum modification necessary to   
prevent the liquidation of the debtor2  
2 and  7#c7 by adding at the end the    

following3  7g7 ,the rejection of a     
collective bargaining agreement under   
this section constitutes a breach of the
 agreement1 and shall entitle employees 
of the debtor to a claim for damages4  4
  7b7 ,health insurance benefits of     
retired employees ,section #aaad of     
title #aa1 ,united ,states ,code1 is    
amended--  7#a7 in subsection 7f7-- 7,a7
 in paragraph 7#a77;,a71 by striking    
necessary modifications in the retiree  
benefits that are necessary to permit   
the reorganization of the debtor and    
insert minimum modifications in the     
retiree benefits that are necessary to  
prevent the liquidation of the debtor2  
and  7,b7 by adding at the end the      
following3  7#c7 ,if the proposal made  
under paragraph 7#a7 provides for a     
modification of the health insurance    
benefits of retired employees of the    
debtor1 the proposal shall provide for a
 modification of the health insurance   
benefits of officers and directors of   
the debtor--  7,a7 to1 at a minimum1 be 

comparable to the modification of health
 insurance benefits of retired employees
 of the debtor2 and  7,b7 such that the 
health insurance benefits of officers   
and directors are not more generous than
 those of retired employees of the      
debtor4  2 and  7#b7 in subsection      
7g77#c71 by striking necessary to permit
 the reorganization of the debtor and   
insert the minimum modification         
necessary to prevent the liquidation of 
the debtor4  #ajb4 ,payment of insurance
 benefits to retirees  7a7 ,in general  
,section #aaad7;j7 of title #aa1 ,united
 ,states ,code1 is amended to read as   
follows3  7j7 7#a7 ,no claim for retiree
 benefits shall be limited by section   
#ejb7;b77#g74  7#b7 7,a7 ,a retired     
employee whose retiree benefits are     
modified under subsection 7e77#a7 or 7g7
 shall have a claim in an amount equal  
to the value of the retiree benefits    
lost as a result of the modification1   
which shall be reduced by the amount    
paid by a debtor under subparagraph     

7,b74  7,b7 7i7 ,in accordance with     
section #aabi7;a77#ac77;,b71 a debtor   
shall pay a retired employee with a     
claim under subparagraph 7,a7--  7,i7   
cash in an amount equal to the #b-year  
cost of premiums for continuation       
coverage 7as defined in section #fjb of 
the ,employee ,retirement ,income       
,security ,act of #aigd 7#bi ,u4,s4,c4  
#aafb77 for the retired employee under  
section #fjb7c7 of the ,employee        
,retirement ,income ,security ,act of   
#aigd 7#bi ,u4,s4,c4 #aafb7c772 or      
7,,ii7 if the retired employee is not   
eligible for continuation coverage1 cash
 in an amount equal to the #b-year cost 
of premiums for a comparable health     
insurance plan offered through a ,state 
,exchange1 ,federally ,facilitated      
,exchange1 or ,federal-,state           
,partnership ,exchange established under
 the ,patient ,protection and           
,affordable ,care ,act 7#db ,u4,s4,c4   
#ahjja et seq474  7ii7 ,notwithstanding 
clause 7i71 if the court determines it  

to be in the interest of fairness and   
equity1 the court may require a debtor  
to pay a retired employee with a claim  
under subparagraph 7,a7 cash in an      
amount equal to the cost of premiums for
 continuation coverage under clause     
7i77,i7 or for a comparable health      
insurance plan under clause 7i77,,ii7   
for a period of more than #b years4     
7iii7 ,the amount paid by a debtor under
 this subparagraph shall not exceed the 
amount of the claim under subparagraph  
7,a74  7,c7 ,any amount of the claim    
under subparagraph 7,a7 that is not paid
 under subparagraph 7,b7 shall be a     
general unsecured claim4  4  7b7        
,confirmation of plan ,section          
#aabi7;a77#ac7 of title #aa1 ,united    
,states ,code1 is amended to read as    
follows3  7#ac7 ,the plan provides--    
7,a7 for the continuation1 after the    
effective date of the plan1 of the      
payment of all retiree benefits 7as     
defined in section #aaad7;a771 at the   
level established pursuant to subsection

 7e77#a7 or 7g7 of section #aaad1 at any
 time before the confirmation of the    
plan1 for the duration of the period the
 debtor has obligated itself to provide 
such benefits2 and  7,b7 that the holder
 of a claim under section               
#aaad7;j77#b77;,a7 shall receive from   
the debtor1 on the effective date of the
 plan1 cash equal to the amount         
calculated under section                
#aaad7;j77#b77;,b74  4  #ajc4 ,fair     
treatment of compensation  7a7          
,prohibition of bonus payments ,section 
#ejc7;c7 of title #aa1 ,united ,states  
,code1 is amended--  7#a7 in paragraph  
7#b77;,b71 by striking or at the end2   
7#b7 by redesignating paragraph 7#c7 as 
paragraph 7#d72 and  7#c7 by inserting  
after paragraph 7#b7 the following3     
7#c7 a bonus payment to an insider of   
the debtor1 including an incentive-based
 bonus payment2 or  4  7b7 ,increased   
priority claim amount for employee wages
 and benefits ,section #ejg7;a7 of title
 #aa1 ,united ,states ,code1 is         

amended--  7#a7 in paragraph 7#d7-- 7,a7
 by striking #aj1jjj and inserting      
#be1jjj2 and  7,b7 by striking #ahj days
 and inserting #a year2 and  7#b7 in    
paragraph 7#e7-- 7,a7 in subparagraph   
7,a71 by striking #ahj days and         
inserting #a year2 and  7,b7 in         
subparagraph 7,b77i71 by striking       
#aj1jjj and inserting #be1jjj4  7c7     
,recovery of excess compensation        
,section #edg of title #aa1 ,united     
,states ,code1 is amended by adding at  
the end the following3  7j7 ,the court1 
upon motion of a party in interest1 may 
prohibit a transfer of compensation made
 to an insider of the debtor within #a  
year before the date on which the       
petition is filed if the court finds1   
after notice and hearing1 that the      
transfer--  7#a7 was not made in the    
ordinary course of business2 or  7#b7   
resulted in unjust enrichment4  4  #ajd4
 ,venue2 change of venue ,chapter #hg of
 title #bh1 ,united ,states ,code1 is   
amended--  7#a7 by amending section     

#adjh to read as follows3  #adjh4 ,venue
 of cases under title #aa  ,except as   
provided in section #adaj1 a case under 
title #aa shall be commenced in the     
district court for the district in which
 the largest share of employees1 retired
 employees1 physical assets1 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 case4  2 and  7#b7  
in section #adab1 by striking to a      
district court for another district and 
inserting 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 case4  #aje4 ,protection of      
benefits in chapter #i bankruptcy       
,section #ija7;a7 of title #aa1 ,united 
,states ,code1 is amended--  7#a7 by    
inserting #ejg7;a77#d71 #ejg7;a77#e71   
after #ejg7;a77#b72  7#b7 by inserting  

#aaac1 #aaad1 after #aaaa7;b72 and  7#c7
 by inserting #aabi7;a77#ac71 after     
#aabi7;a77#aj74  #ajf4 ,requirement to  
make pension contributions  7a7         
,requirement ,to pay minimum funding    
contributions ,subchapter ,i of chapter 
#aa of title #aa1 ,united ,states ,code1
 is amended by adding at the end the    
following3  #aaag4 ,duty of debtor in   
possession to make required pension     
contributions  7a7 ,definitions ,in this
 section-- 7#a7 the term pension plan   
has the meaning given that term under   
section #c of the ,employee ,retirement 
,income ,security ,act of #aigd 7#bi    
,u4,s4,c4 #ajjb72 and  7#b7 the term    
required pension contributions means    
contributions necessary to satisfy the  
minimum funding standards under sections
 #dab and #dcj of the ,internal ,revenue
 ,code of #aihf and sections #cjb and   
#cjc of the ,employee ,retirement       
,income ,security ,act of #aigd 7#bi    
,u4,s4,c4 #ajhb and #ajhc71 including   
any required installment contributions4 

7b7 ,requirement ,a debtor in possession
 that sponsors a pension plan or is a   
member of the controlled group with     
respect to such a plan1 or the trustee  
of the debtor in possession1 shall--    
7#a7 make all required pension          
contributions to the pension plan that  
become due after the filing of the      
petition2 and  7#b7 make such           
contributions on or before the due dates
 specified in section #dcj7;j7 of the   
,internal ,revenue ,code and section    
#cjc7;j7 of the ,employee ,retirement   
,income ,security ,act of #aigd 7#bi    
,u4,s4,c4 #ajhc7;j774  4  7b7 ,treatment
 as administrative expenses ,section    
#ejc7;b7 of title #aa1 ,united ,states  
,code1 is amended-- 7#a7 in paragraph   
7#h77;,b71 by striking and at the end2  
7#b7 in paragraph 7#i71 by striking the 
period at the end and inserting 2 and2  
and  7#c7 by adding at the end the      
following3  7#aj7 any required pension  
contributions under section #aaag due to
 be made after the filing of the        

petition that are unpaid4  4  7c7       
,perfection of statutory liens for      
missed pension contributions ,section   
#cfb7;b7 of title #aa1 ,united ,states  
,code1 is amended-- 7#a7 in paragraph   
7#bg71 by striking and at the end2  7#b7
 in paragraph 7#bh71 by striking the    
period at the end and inserting 2 and2  
and  7#c7 by adding at the end the      
following3  7#bi7 under subsection 7a71 
of any act to perfect1 or to maintain or
 continue the perfection of1 a statutory
 lien imposed by section #dcj7k7 of the 
,internal ,revenue ,code of #aihf or    
section #cjc7k7 of the ,employee        
,retirement ,income ,security ,act 7#bi 
,u4,s4,c4 #ajhc7k77 7which shall not be 
voidable under section #ede of this     
title71 for failure to make contribution
 payments required under those sections1
 without regard to whether such         
contributions became due or whether such
 lien arose before or after the filing  
of the petition4  4  ,,ii ,protection of
 employee and retiree health benefits   

#bja4 ,notification of extent to which  
health benefits can be modified or      
terminated  7a7 ,inclusion in summary   
plan description ,section #ajb7;b7 of   
the ,employee ,retirement ,income       
,security ,act of #aigd 7#bi ,u4,s4,c4  
#ajbb7 is amended by inserting 2 in the 
case of a group health plan 7as so      
defined71 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 
employees1 retired employees1 and       
beneficiaries1 and when and to what     
extent benefits under the plan are fully
 vested with respect to employees1      
retired employees1 and beneficiaries    
after the name and address of such      
issuer4  7b7 ,presumption that retired  
employee health benefits cannot be      
modified or terminated ,section #ejb of 
the ,employee ,retirement ,income       
,security ,act of #aigd 7#bi ,u4,s4,c4  
#aacb7 is amended by adding at the end  

the following new subsection3  7n7 ,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 7as  
defined in section #gcc7;a77#a771 the   
presumption for purposes of such suit   
shall be that as of the date an employee
 retires or completes #bj years of      
service with the employer1 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 
or1 if longer1 the life of the          
employee's spouse4 ,this presumption can
 be overcome only upon a showing1 by    
clear and convincing evidence1 that the 
terms of the group health plan allow for
 a modification or termination of       
benefits available under the plan and   
that the employee1 prior to becoming a  
participant in the plan1 was made aware1
 in clear and unambiguous terms1 that   

the plan allowed for such modification  
or termination of benefits4  4  #bjb4   
,protection of retirees under certain   
collectively bargained agreements       
,section #h of the ,national ,labor     
,relations ,act 7#bi ,u4,s4,c4 #aeh7 is 
amended by adding at the end the        
following3  7h7 ,it shall be an unfair  
labor practice for any labor            
organization and any employer to enter  
into any contract or agreement1 express 
or implied1 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 agreement1 if such modification
 of the terms of the previous agreement 
occurs after the date on which the      
employee retires4  4  #bjc4 ,comptroller
 ,general report  7a7 ,in general ,not  
later than #ahj days after the date of  
enactment of this ,act1 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 benefits4  7b7     
,contents ,the report under subsection  
7a7 shall include a discussion of--     
7#a7 the use of spin-offs1 mergers1     
subsidiaries1 bankruptcies1 asset sales1
 and other strategies to avoid          
obligations to pay promised employee and
 retiree benefits2  7#b7 the impact of  
such avoidance on the financial1        
physical1 and mental well-being of      
employees and retirees2  7#c7 the impact
 on ,federal and ,state budgets when    
employers terminate or reduce the       
benefits of employees and retirees1     
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 benefits2   
and  7#d7 recommendations to prevent    

corporations from evading contractual   
obligations to pay employee and retiree 
benefits4