S. 2511 — Introduced in Senate

II 113th CONGRESS 2d Session S. 2511 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. 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.