< Back to H.R. 4590 (109th Congress, 2005–2006)

Text of the Employee Retirement Preservation Act

This bill was introduced on December 16, 2005, in a previous session of Congress, but was not enacted. The text of the bill below is as of Dec 16, 2005 (Introduced).

Source: GPO

HR 4590 IH

109th CONGRESS

1st Session

H. R. 4590

To amend title 11 of the United States Code to provide fair treatment of employee benefits.

IN THE HOUSE OF REPRESENTATIVES

December 16, 2005

Mr. FORD introduced the following bill; which was referred to the Committee on the Judiciary


A BILL

To amend title 11 of the United States Code to provide fair treatment of employee benefits.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the `Employee Retirement Preservation Act'.

SEC. 2. FAIR TREATMENT OF EMPLOYEE BENEFITS.

    (a) DEFINITION OF CLAIM- Section 101(5) of title 11, United States Code, is amended--

      (1) in subparagraph (A), by striking `or' at the end;

      (2) in subparagraph (B), by inserting `or' after the semicolon; and

      (3) by adding at the end the following:

        `(C) right or interest in equity securities of the debtor, or an affiliate of the debtor, held in a pension plan (within the meaning of section 3(2) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002(2))) for the benefit of an individual who is not an officer or director of the debtor, if such securities were attributable to--

          `(i) employer contributions by the debtor or an affiliate of the debtor other than elective deferrals (within the meaning of section 402(g) of the Internal Revenue Code of 1986), and any earnings thereon; and

          `(ii) elective deferrals (and any earnings thereon) 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,

        except that this subparagraph shall not apply to any such securities during any period during which 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;'.

    (b) PRIORITIES- Section 507(a)(5) of title 11, United States Code, is amended--

      (1) in subparagraph (B), by indenting the left margin of clauses (i) and (ii) 2 ems to the right and redesignating such clauses as subclauses (I) and (II), respectively;

      (2) by indenting the left margin of subparagraphs (A) and (B) 2 ems to the right and redesignating such subparagraphs as clauses (i) and (ii), respectively;

      (3) in the matter preceding clause (i), as so redesignated, by striking `Fifth' and all that follows through `plan--' and inserting the following: `Fifth--

        `(A) allowed unsecured claims for contributions to an employee benefit plan--';

      (4) by striking the period at the end and inserting the following: `; or'; and

      (5) by adding at the end the following:

        `(B) allowed unsecured claims with respect to rights or interests in equity securities of the debtor, or an affiliate of the debtor, that are held in a pension plan (within the meaning of section 3(2) of the Employee Retirement Income Security Act of 1974), without regard to when services were rendered or limitation in amount, and measured by the market value of the stock at the time the stock was contributed to, or purchased by, the plan.'.

SEC. 3. WAGE PRIORITY AND EMPLOYEE BENEFIT CAP.

    Section 507(a) of title 11, United States Code, is amended--

      (1) in paragraph (3), by striking `$10,000' and inserting `$13,500'; and

      (2) in paragraph (5)(A)(ii)(I), as so redesignated by section 2, by striking `$10,000' and inserting `$13,500'.

SEC. 4. SUBORDINATION.

    Section 510(b) of title 11, United States Code, is amended by inserting `(other than a claim described in section 105(5)(C))' after `claim' the 1st place it appears.