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The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress, and was published on Dec 16, 2005.
Employee Retirement Preservation Act - Amends federal bankruptcy law to redefine "claim" to include a right or interest in equity securities of the debtor (or its affiliate) held in a pension plan for the benefit of an individual who is not an officer or director of the debtor, if such securities were attributable to: (1) employer contributions by the debtor (or an affiliate) other than elective deferrals; and (2) elective deferrals (and any earnings on them) that are required to be invested in such securities under the terms of the plan or at the direction of a person other than the individual or any beneficiary.
Makes this requirement inapplicable, however, to any such securities during a period when the individual or any beneficiary has the right to direct the plan to divest such securities and to reinvest an equivalent amount in other investment options of the plan.
Modifies the priority scheme for expenses and claims to place in fifth order of priority allowed unsecured claims concerning rights or interests in equity securities of the debtor held in a pension plan measured by the market value of the stock at the time of its contribution or purchased by the plan.
Increases from $10,000 to $13,500 the maximum amount of allowed unsecured claims for contributions to an employee benefit plan.
