Sec. 102. Payment of insurance benefits to retirees
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/bill/113/s/2418/is/section-102A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 1114(j) of title 11, United States Code, is amended to read as follows: No claim for retiree benefits shall be limited by section 502(b)(7). A retired employee whose retiree benefits are modified under subsection (e)(1) or
(g)shall have a claim in an amount equal to the value of the retiree benefits lost as a result of the modification, which shall be reduced by the amount paid by a debtor under subparagraph (B). In accordance with section 1129(a)(13)(B), a debtor shall pay a retired employee with a claim under subparagraph (A)— cash in an amount equal to the 2-year cost of premiums for continuation coverage (as defined in section 602 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1162 )) for the retired employee under section 602(3) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1162(3) ); or if the retired employee is not eligible for continuation coverage, cash in an amount equal to the 2-year cost of premiums for a comparable health insurance plan offered through a State Exchange, Federally Facilitated Exchange, or Federal-State Partnership Exchange established under the Patient Protection and Affordable Care Act ( 42 U.S.C. 18001 et seq. ). Notwithstanding clause (i), if the court determines it to be in the interest of fairness and equity, the court may require a debtor to pay a retired employee with a claim under subparagraph
(A)cash in an amount equal to the cost of premiums for continuation coverage under clause (i)(I) or for a comparable health insurance plan under clause (i)(II) for a period of more than 2 years. The amount paid by a debtor under this subparagraph shall not exceed the amount of the claim under subparagraph (A). Any amount of the claim under subparagraph
(A)that is not paid under subparagraph
(B)shall be a general unsecured claim. . Section 1129(a)(13) of title 11, United States Code, is amended to read as follows: The plan provides— for the continuation, after the effective date of the plan, of the payment of all retiree benefits (as defined in section 1114(a)), at the level established pursuant to subsection (e)(1) or
(g)of section 1114, at any time before the confirmation of the plan, for the duration of the period the debtor has obligated itself to provide such benefits; and that the holder of a claim under section 1114(j)(2)(A) shall receive from the debtor, on the effective date of the plan, cash equal to the amount calculated under section 1114(j)(2)(B). .
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