,,ii  #aac? ,,congress  #b;d ,session   
,s4 #bdah  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,june #c1 #bjad ,mr4   
,rockefell] 7= himself & ,ms4 ,w>r57    
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on !     
,judici>y  ,a ,,bill  ,to am5d title #aa
 & title #bi1 ,unit$ ,/ates ,code1 to   
increase ! am\nt ( unsecur$ claims =    
sal>ies & wages giv5 priority 9         
bankruptcy1 to provide = paym5ts to     
retirees to comp5sate = lo/ heal?       
insurance b5efits result+ f ! bankruptcy
 ( _! =m] employ]1 to protect ! heal?   
b5efits ( employees & retirees1 & = o!r 
purposes4  #a4 ,%ort title  7a7 ,%ort   
title ,?is ,act may be cit$ z !         
,bankruptcy ,fairness & ,employee       
,b5efits ,protection ,act ( #bjad4  7b7 
,table ( cont5ts ,! table ( cont5ts =   
?is ,act is z foll[s3 ,sec4 #a4 ,%ort   
title4 ,,title ,i--,fairness = employees
 & retirees 9 corporate bankruptcies    
,sec4 #aja4 ,prohibition ( unfair       
r$uctions to employee & retiree b5efits4

 ,sec4 #ajb4 ,paym5t ( insurance b5efits
 to retirees4 ,sec4 #ajc4 ,fair treatm5t
 ( comp5sation4 ,sec4 #ajd4 ,v5ue2 *ange
 ( v5ue4 ,sec4 #aje4 ,protection (      
b5efits 9 *apt] #i bankruptcy4 ,sec4    
#ajf4 ,requirem5t to make p5sion        
contributions4 ,,title ,,ii--,protection
 ( employee & retiree heal? b5efits     
,sec4 #bja4 ,notification ( ext5t to :i*
 heal? b5efits c be modifi$ or t]m9at$4 
,sec4 #bjb4 ,protection ( retirees "u   
c]ta9 collectively b>ga9$ agreem5ts4    
,sec4 #bjc4 ,comptroll] ,g5]al report4  
,i ,fairness = employees & retirees 9   
corporate bankruptcies  #aja4           
,prohibition ( unfair r$uctions to      
employee & retiree b5efits  7a7         
,collective b>ga9+ agreem5ts ,section   
#aaac ( title #aa1 ,unit$ ,/ates ,code1 
is am5d$--  7#a7 9 subsection 7b7--     
7,a7 9 p>agraph 7#a77;,a71 by /rik+     
necess>y modifications 9 ! employees    
b5efits & protections t are necess>y to 
p]mit ! reorganization ( ! debtor &     
ins]t m9imum modifications 9 ! employees

 b5efits & protections t are necess>y to
 prev5t ! liquidation ( ! debtor2 &     
7,b7 by add+ at ! end ! foll[+3  7#c7   
7,a7 ,if ! proposal made "u p>agraph    
7#a7 provides = a modification ( ! heal?
 insurance b5efits ( employees ( !      
debtor1 ! proposal %all provide = a     
modification ( ! heal? insurance b5efits
 ( (fic]s & directors ( ! debtor--  7i7 
to1 at a m9imum1 be comp>able to !      
modification ( heal? insurance b5efits (
 employees ( ! debtor2 &  7ii7 su* t !  
heal? insurance b5efits ( (fic]s &      
directors are n m g5]\s ?an ^? (        
employees ( ! debtor4  7,b7 ,if !       
proposal made "u p>agraph 7#a7 provides 
= a modification ( any b5efit (         
employees ( ! debtor o!r ?an heal?      
insurance b5efits1 includ+ wages &      
p5sion b5efits1 ! proposal %all provide 
= a modification ( su* b5efit ( (fic]s &
 directors ( ! debtor t is1 at a m9imum1
 9 an am\nt equal to ! p]c5tage by :i*  
su* b5efit ( employees ( ! debtor 0     
modifi$4  2  7#b7 9 subsection 7c7--    

7,a7 9 p>agraph 7#a71 by /rik+          
subsection 7b77#a7 & ins]t+ p>agraphs   
7#a7 & 7#c7 ( subsection 7b72  7,b7 by  
r$esignat+ p>agraphs 7#b7 & 7#c7 z      
p>agraphs 7#c7 & 7#d71 respectively2 &  
7,c7 by ins]t+ aft] p>agraph 7#a7 !     
foll[+3  7#b7 ! debtor e/abli%$ by cle> 
& conv9c+ evid5ce t any modification ( !
 b5efits & protections ( an employee ( !
 debtor propos$ "u subsection 7b77#a7 is
 ! m9imum modification necess>y to      
prev5t ! liquidation ( ! debtor2  2 &   
7#c7 by add+ at ! end ! foll[+3  7g7 ,! 
rejection ( a collective b>ga9+ agreem5t
 "u ?is section con/itutes a brea* ( !  
agreem5t1 & %all entitle employees ( !  
debtor to a claim = damages4  4  7b7    
,heal? insurance b5efits ( retir$       
employees ,section #aaad ( title #aa1   
,unit$ ,/ates ,code1 is am5d$--  7#a7 9 
subsection 7f7-- 7,a7 9 p>agraph        
7#a77;,a71 by /rik+ necess>y            
modifications 9 ! retiree b5efits t are 
necess>y to p]mit ! reorganization ( !  
debtor & ins]t m9imum modifications 9 ! 

retiree b5efits t are necess>y to prev5t
 ! liquidation ( ! debtor2 &  7,b7 by   
add+ at ! end ! foll[+3  7#c7 ,if !     
proposal made "u p>agraph 7#a7 provides 
= a modification ( ! heal? insurance    
b5efits ( retir$ employees ( ! debtor1 !
 proposal %all provide = a modification 
( ! heal? insurance b5efits ( (fic]s &  
directors ( ! debtor--  7,a7 to1 at a   
m9imum1 be comp>able to ! modification (
 heal? insurance b5efits ( retir$       
employees ( ! debtor2 &  7,b7 su* t !   
heal? insurance b5efits ( (fic]s &      
directors are n m g5]\s ?an ^? ( retir$ 
employees ( ! debtor4  2 &  7#b7 9      
subsection 7g77#c71 by /rik+ necess>y to
 p]mit ! reorganization ( ! debtor &    
ins]t ! m9imum modification necess>y to 
prev5t ! liquidation ( ! debtor4  #ajb4 
,paym5t ( insurance b5efits to retirees 
7a7 ,9 g5]al ,section #aaad7;j7 ( title 
#aa1 ,unit$ ,/ates ,code1 is am5d$ to   
read z foll[s3  7j7 7#a7 ,no claim =    
retiree b5efits %all be limit$ by       
section #ejb7;b77#g74  7#b7 7,a7 ,a     

retir$ employee ^: retiree b5efits are  
modifi$ "u subsection 7e77#a7 or 7g7    
%all h a claim 9 an am\nt equal to !    
value ( ! retiree b5efits lo/ z a result
 ( ! modification1 :i* %all be r$uc$ by 
! am\nt paid by a debtor "u subp>agraph 
7,b74  7,b7 7i7 ,9 accordance ) section 
#aabi7;a77#ac77;,b71 a debtor %all pay a
 retir$ employee ) a claim "u           
subp>agraph 7,a7--  7,i7 ca% 9 an am\nt 
equal to ! #b-ye> co/ ( premiums =      
cont9uation cov]age 7z def9$ 9 section  
#fjb ( ! ,employee ,retirem5t ,income   
,security ,act ( #aigd 7#bi ,u4,s4,c4   
#aafb77 = ! retir$ employee "u section  
#fjb7c7 ( ! ,employee ,retirem5t ,income
 ,security ,act ( #aigd 7#bi ,u4,s4,c4  
#aafb7c772 or  7,,ii7 if ! retir$       
employee is n eligible = cont9uation    
cov]age1 ca% 9 an am\nt equal to !      
#b-ye> co/ ( premiums = a comp>able     
heal? insurance plan (f]$ ?r\gh a ,/ate 
,ex*ange1 ,f$]ally ,facilitat$ ,ex*ange1
 or ,f$]al-,/ate ,p>tn]%ip ,ex*ange     
e/abli%$ "u ! ,pati5t ,protection &     

,af=dable ,c>e ,act 7#db ,u4,s4,c4      
#ahjja et seq474  7ii7 ,not)/&+ clause  
7i71 if ! c\rt det]m9es x to be 9 !     
int]e/ ( fairness & equity1 ! c\rt may  
require a debtor to pay a retir$        
employee ) a claim "u subp>agraph 7,a7  
ca% 9 an am\nt equal to ! co/ ( premiums
 = cont9uation cov]age "u clause 7i77,i7
 or = a comp>able heal? insurance plan  
"u clause 7i77,,ii7 = a p]iod ( m ?an #b
 ye>s4  7iii7 ,! am\nt paid by a debtor 
"u ?is subp>agraph %all n exce$ ! am\nt 
( ! claim "u subp>agraph 7,a74  7,c7    
,any am\nt ( ! claim "u subp>agraph 7,a7
 t is n paid "u subp>agraph 7,b7 %all be
 a g5]al unsecur$ claim4  4  7b7        
,confirmation ( plan ,section           
#aabi7;a77#ac7 ( title #aa1 ,unit$      
,/ates ,code1 is am5d$ to read z foll[s3
  7#ac7 ,! plan provides--  7,a7 = !    
cont9uation1 aft] ! effective date ( !  
plan1 ( ! paym5t ( all retiree b5efits  
7z def9$ 9 section #aaad7;a771 at !     
level e/abli%$ pursuant to subsection   
7e77#a7 or 7g7 ( section #aaad1 at any  

"t be=e ! confirmation ( ! plan1 = !    
duration ( ! p]iod ! debtor has obligat$
 itself to provide su* b5efits2 &  7,b7 
t ! hold] ( a claim "u section          
#aaad7;j77#b77;,a7 %all receive f !     
debtor1 on ! effective date ( ! plan1   
ca% equal to ! am\nt calculat$ "u       
section #aaad7;j77#b77;,b74  4  #ajc4   
,fair treatm5t ( comp5sation  7a7       
,prohibition ( bonus paym5ts ,section   
#ejc7;c7 ( title #aa1 ,unit$ ,/ates     
,code1 is am5d$--  7#a7 9 p>agraph      
7#b77;,b71 by /rik+ or at ! end2  7#b7  
by r$esignat+ p>agraph 7#c7 z p>agraph  
7#d72 &  7#c7 by ins]t+ aft] p>agraph   
7#b7 ! foll[+3  7#c7 a bonus paym5t to  
an insid] ( ! debtor1 includ+ an        
inc5tive-bas$ bonus paym5t2 or  4  7b7  
,increas$ priority claim am\nt =        
employee wages & b5efits ,section       
#ejg7;a7 ( title #aa1 ,unit$ ,/ates     
,code1 is am5d$--  7#a7 9 p>agraph      
7#d7-- 7,a7 by /rik+ #aj1jjj & ins]t+   
#be1jjj2 &  7,b7 by /rik+ #ahj days &   
ins]t+ #a ye>2 &  7#b7 9 p>agraph 7#e7--

 7,a7 9 subp>agraph 7,a71 by /rik+ #ahj 
days & ins]t+ #a ye>2 &  7,b7 9         
subp>agraph 7,b77i71 by /rik+ #aj1jjj & 
ins]t+ #be1jjj4  7c7 ,recov]y ( excess  
comp5sation ,section #edg ( title #aa1  
,unit$ ,/ates ,code1 is am5d$ by add+ at
 ! end ! foll[+3  7j7 ,! c\rt1 ^u motion
 ( a p>ty 9 int]e/1 may prohibit a      
transf] ( comp5sation made to an insid] 
( ! debtor )9 #a ye> be=e ! date on :i* 
! petition is fil$ if ! c\rt f9ds1 aft] 
notice & he>+1 t ! transf]--  7#a7 0 n  
made 9 ! ord9>y c\rse ( bus9ess2 or     
7#b7 result$ 9 unju/ enri*m5t4  4  #ajd4
 ,v5ue2 *ange ( v5ue ,*apt] #hg ( title 
#bh1 ,unit$ ,/ates ,code1 is am5d$--    
7#a7 by am5d+ section #adjh to read z   
foll[s3  #adjh4 ,v5ue ( cases "u title  
#aa  ,except z provid$ 9 section #adaj1 
a case "u title #aa %all be comm5c$ 9 ! 
di/rict c\rt = ! di/rict 9 :i* ! l>ge/  
%>e ( employees1 retir$ employees1      
physical assets1 & op]ations ( ! p]son  
or entity t is ! subject ( ! case 7     
locat$ 9 ! ye> imm$iately prec$+ !      

comm5cem5t ( ! case4  2 &  7#b7 9       
section #adab1 by /rik+ to a di/rict    
c\rt = ano!r di/rict & ins]t+ to !      
di/rict c\rt = ! di/rict 9 :i* !        
pr9cipal place ( bus9ess 9 ! ,unit$     
,/ates ( ! p]son or entity t is !       
subject ( ! case 0 locat$ 9 ! ye>       
imm$iately prec$+ ! comm5cem5t ( ! case4
  #aje4 ,protection ( b5efits 9 *apt] #i
 bankruptcy ,section #ija7;a7 ( title   
#aa1 ,unit$ ,/ates ,code1 is am5d$--    
7#a7 by ins]t+ #ejg7;a77#d71            
#ejg7;a77#e71 aft] #ejg7;a77#b72  7#b7  
by ins]t+ #aaac1 #aaad1 aft] #aaaa7;b72 
&  7#c7 by ins]t+ #aabi7;a77#ac71 aft]  
#aabi7;a77#aj74  #ajf4 ,requirem5t to   
make p5sion contributions  7a7          
,requirem5t ,to pay m9imum fund+        
contributions ,sub*apt] ,i ( *apt] #aa (
 title #aa1 ,unit$ ,/ates ,code1 is     
am5d$ by add+ at ! end ! foll[+3  #aaag4
 ,duty ( debtor 9 possession to make    
requir$ p5sion contributions  7a7       
,def9itions ,9 ?is section-- 7#a7 ! t]m 
p5sion plan has ! mean+ giv5 t t]m "u   

section #c ( ! ,employee ,retirem5t     
,income ,security ,act ( #aigd 7#bi     
,u4,s4,c4 #ajjb72 &  7#b7 ! t]m requir$ 
p5sion contributions means contributions
 necess>y to satisfy ! m9imum fund+     
/&>ds "u sections #dab & #dcj ( !       
,int]nal ,rev5ue ,code ( #aihf &        
sections #cjb & #cjc ( ! ,employee      
,retirem5t ,income ,security ,act (     
#aigd 7#bi ,u4,s4,c4 #ajhb & #ajhc71    
includ+ any requir$ in/allm5t           
contributions4  7b7 ,requirem5t ,a      
debtor 9 possession t sponsors a p5sion 
plan or is a memb] ( ! controll$ gr\p ) 
respect to su* a plan1 or ! tru/ee ( !  
debtor 9 possession1 %all-- 7#a7 make   
all requir$ p5sion contributions to !   
p5sion plan t become due aft] ! fil+ ( !
 petition2 &  7#b7 make su*             
contributions on or be=e ! due dates    
specifi$ 9 section #dcj7;j7 ( ! ,int]nal
 ,rev5ue ,code & section #cjc7;j7 ( !   
,employee ,retirem5t ,income ,security  
,act ( #aigd 7#bi ,u4,s4,c4 #ajhc7;j774 
4  7b7 ,treatm5t z adm9i/rative exp5ses 

,section #ejc7;b7 ( title #aa1 ,unit$   
,/ates ,code1 is am5d$-- 7#a7 9 p>agraph
 7#h77;,b71 by /rik+ & at ! end2  7#b7 9
 p>agraph 7#i71 by /rik+ ! p]iod at !   
end & ins]t+ 2 &2 &  7#c7 by add+ at !  
end ! foll[+3  7#aj7 any requir$ p5sion 
contributions "u section #aaag due to be
 made aft] ! fil+ ( ! petition t are    
unpaid4  4  7c7 ,p]fection ( /atutory   
li5s = miss$ p5sion contributions       
,section #cfb7;b7 ( title #aa1 ,unit$   
,/ates ,code1 is am5d$-- 7#a7 9 p>agraph
 7#bg71 by /rik+ & at ! end2  7#b7 9    
p>agraph 7#bh71 by /rik+ ! p]iod at !   
end & ins]t+ 2 &2 &  7#c7 by add+ at !  
end ! foll[+3  7#bi7 "u subsection 7a71 
( any act to p]fect1 or to ma9ta9 or    
cont9ue ! p]fection (1 a /atutory li5   
impos$ by section #dcj7k7 ( ! ,int]nal  
,rev5ue ,code ( #aihf or section #cjc7k7
 ( ! ,employee ,retirem5t ,income       
,security ,act 7#bi ,u4,s4,c4 #ajhc7k77 
7:i* %all n be voidable "u section #ede 
( ?is title71 = failure to make         
contribution paym5ts requir$ "u ^?      

sections1 )\t reg>d to :e!r su*         
contributions became due or :e!r su* li5
 arose be=e or aft] ! fil+ ( ! petition4
  4  ,,ii ,protection ( employee &      
retiree heal? b5efits  #bja4            
,notification ( ext5t to :i* heal?      
b5efits c be modifi$ or t]m9at$  7a7    
,inclusion 9 summ>y plan description    
,section #ajb7;b7 ( ! ,employee         
,retirem5t ,income ,security ,act (     
#aigd 7#bi ,u4,s4,c4 #ajbb7 is am5d$ by 
ins]t+ 2 9 ! case ( a gr\p heal? plan 7z
 s def9$71 :e!r ! provisions ( ! plan   
p]mit ! plan sponsor or any employ]     
p>ticipat+ 9 ! plan to unilat]ally      
modify or t]m9ate ! b5efits "u ! plan ) 
respect to employees1 retir$ employees1 
& b5efici>ies1 & :5 & to :at ext5t      
b5efits "u ! plan are fully ve/$ )      
respect to employees1 retir$ employees1 
& b5efici>ies aft] ! "n & address ( su* 
issu]4  7b7 ,presumption t retir$       
employee heal? b5efits _c be modifi$ or 
t]m9at$ ,section #ejb ( ! ,employee     
,retirem5t ,income ,security ,act (     

#aigd 7#bi ,u4,s4,c4 #aacb7 is am5d$ by 
add+ at ! end ! foll[+ new subsection3  
7n7 ,9 ! case ( a suit br\ght "u ?is    
title by a p>ticipant or b5efici>y      
relat+ to b5efits ( a retir$ employee or
 ! dep5d5ts ( a retir$ employee "u a    
gr\p heal? plan 7z def9$ 9 section      
#gcc7;a77#a771 ! presumption = purposes 
( su* suit %all be t z ( ! date an      
employee retires or completes #bj ye>s (
 s]vice ) ! employ]1 b5efits available  
"u ! plan dur+ retirem5t ( ! employee   
are fully ve/$ & _c be modifi$ or       
t]m9at$ = ! life ( ! employee or1 if    
long]1 ! life ( ! employee's sp\se4 ,?is
 presumption c be ov]come only ^u a %[+1
 by cle> & conv9c+ evid5ce1 t ! t]ms ( !
 gr\p heal? plan all[ = a modification  
or t]m9ation ( b5efits available "u !   
plan & t ! employee1 prior to becom+ a  
p>ticipant 9 ! plan1 0 made aw>e1 9 cle>
 & unambigu\s t]ms1 t ! plan all[$ = su*
 modification or t]m9ation ( b5efits4  4
  #bjb4 ,protection ( retirees "u c]ta9 
collectively b>ga9$ agreem5ts ,section  

#h ( ! ,national ,labor ,relations ,act 
7#bi ,u4,s4,c4 #aeh7 is am5d$ by add+ at
 ! end ! foll[+3  7h7 ,x %all be an     
unfair labor practice = any labor       
organization & any employ] to ent] into 
any contract or agreem5t1 express or    
impli$1 :]eby ! organization & employ]  
agree to modify ! t]ms ( any previ\s    
agreem5t 9 a mann] t w\ld result 9 a    
r$uction or t]m9ation ( retiree heal?   
insurance b5efits provid$ to an employee
 or a dep5d5t ( an employee "u ! previ\s
 agreem5t1 if su* modification ( ! t]ms 
( ! previ\s agreem5t occurs aft] ! date 
on :i* ! employee retires4  4  #bjc4    
,comptroll] ,g5]al report  7a7 ,9 g5]al 
,n lat] ?an #ahj days aft] ! date (     
enactm5t ( ?is ,act1 ! ,comptroll]      
,g5]al ( ! ,unit$ ,/ates %all submit to 
,congress a report on ! /rategies t     
corporations use to avoid obligations to
 pay promis$ employee & retiree b5efits4
  7b7 ,cont5ts ,! report "u subsection  
7a7 %all include a discussion (--  7#a7 
! use ( sp9-(fs1 m]g]s1 subsidi>ies1    

bankruptcies1 asset sales1 & o!r        
/rategies to avoid obligations to pay   
promis$ employee & retiree b5efits2     
7#b7 ! impact ( su* avoidance on !      
f9ancial1 physical1 & m5tal well-be+ (  
employees & retirees2  7#c7 ! impact on 
,f$]al & ,/ate budgets :5 employ]s      
t]m9ate or r$uce ! b5efits ( employees &
 retirees1 includ+ ! co/s t are incurr$ 
:5 employees & retirees seek assi/ance f
 ,f$]al & ,/ate gov]nm5t programs &     
s]vices z a result ( ! t]m9ation or     
r$uction ( _! employm5t-relat$ b5efits2 
&  7#d7 recomm5dations to prev5t        
corporations f evad+ contractual        
obligations to pay employee & retiree   
b5efits4