article: SECTION 1. PRIORITY OF CLAIMS FOR RETIREE HEALTH BENEFITS. (a) Definition.--Section 101 of title 11, United States Code, is amended-- (1) by redesignating paragraphs (4) through (12A) as paragraphs (3) through (12), respectively, (2) by redesignating paragraphs (48) through (55) as paragraphs (53) through (68), respectively, (3) by inserting after paragraph (47) the following: ``(52) `retiree health benefits' means payments to any entity or person for the purpose of providing or reimbursing payments for retired employees and their spouses and dependents, for medical, surgical, or hospital care benefits under any plan, fund, or program (through the purchase of insurance or otherwise) maintained or established in whole or in part by the debtor prior to filing a petition commencing a case under this title;'', and (4) by redesignating paragraphs (21A) through (47) as paragraphs (22) through (51), respectively, (b) Priority Under Chapter 7.--(1) Section 726(a)(1) of title 11, United States Code, is amended to read as follows: ``(1) first-- ``(A) except as provided in subparagraph (B), in payment of claims of the kind specified in, and in the order specified in section 507 of this title, proof of which is timely filed under section 501 of this title or tardily filed before the date on which the trustee commences distribution under this section; and ``(B) immediately after payment of claims of the kind specified in section 507(a)(4), in payment of allowed unsecured claims for retiree health benefits, but only to the extent of the aggregate amount that represents $10,000 multiplied by the number of former employees with respect to whom a retiree health benefit accrues;''. (2) Section 724(b)(2) of title 11, United States Code, is amended by inserting ``, and to holders of claims for retiree health benefits payable under section 726(a)(1)(B) of this title,'' after ``this title''. (c) Priority Under Chapter 11.--Section 1129(a) of title 11, United States Code, is amended-- (1) in paragraph (9)-- (A) in subparagraph (B)-- (i) by inserting ``subject to subparagraph (D)'' after ``receive'', and (ii) by striking ``and'' at the end, (B) in subparagraph (C) by striking the period at the end and inserting ``; and'', and (C) by adding at the end the following: ``(D) if liquidation is proposed in the plan, with respect to a class of claims for retiree health benefits, such class will receive immediately after payment of claims of the kinds specified in paragraphs (1), (2), (3), and (4) of section 507(a) of this title-- ``(i) if such class has accepted the plan, deferred cash payments of a value, as of the effective date of the plan; or ``(ii) if such class has not accepted the plan, cash on the effective date of the plan; equal to the allowed aggregate amount of such claims, but only to the extent of the aggregate amount that represents $10,000 multiplied by the number of former employees with respect to whom a retiree health benefit accrues.'', and (2) by amending paragraph (13) to read as follows: ``(13) The plan provides-- ``(A) except as provided in subparagraph (B), for the continuation after its effective date of payment of all retiree benefits (as defined in section 1114 of this title) at the level established pursuant to subsection (e)(1)(B) or (g) of section 1114 of this title, at any time prior to confirmation of the plan, for the duration of the period the debtor has obligated itself to provide such benefits; and ``(B) if the plan provides for liquidation, for the payment of allowed unsecured claims for retiree health benefits, but only to the extent of the aggregate amount that represents $10,000 multiplied by the number of former employees with respect to whom a retiree health benefit accrues.''. SEC. 2. RULE OF CONSTRUCTION. The amendments made by this Act shall not be construed to limit any priority to which claims for retiree health benefits are entitled under the provisions of title 11 of the United States Code that are not amended by this Act. SEC. 3. EFFECTIVE DATES; APPLICATION OF AMENDMENTS. (a) Effective Date.--Except as provided in subsection (b), this Act and the amendments made by section 1 shall take effect on the date of the enactment of this Act. (b) Application of Amendments.--(1) Except as provided in paragraph (2), the amendments made by section 1 shall apply only with respect to cases commenced under title 11, United States Code, after the date of the enactment of this Act. (2) The amendments made by section 1 shall apply with respect to-- (A) cases commenced under chapter 11 of title 11, United States Code, on or after March 1, 1989; and (B) cases converted from chapter 11 of title 11, United States Code, to chapter 7 of such Code on or after September 1, 1991.
summary: Amends Federal bankruptcy law to establish a payment priority for retiree health benefit claims, with an aggregate limitation of $10,000 multiplied by the relevant number of former employees.