text: SECTION 1. SHORT TITLE.
  
      (a) Short Title.--This Act may be cited as the ``Bankruptcy 
  Fairness and Employee Benefits Protection Act of 2014''.
      (b) Table of Contents.--The table of contents for this Act is as 
  follows:
  
  Sec. 1. Short title.
   TITLE I--FAIRNESS FOR EMPLOYEES AND RETIREES IN CORPORATE BANKRUPTCIES
  
  Sec. 101. Prohibition of unfair reductions to employee and retiree 
                              benefits.
  Sec. 102. Payment of insurance benefits to retirees.
  Sec. 103. Fair treatment of compensation.
  Sec. 104. Venue; change of venue.
  Sec. 105. Protection of benefits in chapter 9 bankruptcy.
  Sec. 106. Requirement to make pension contributions.
        TITLE II--PROTECTION OF EMPLOYEE AND RETIREE HEALTH BENEFITS
  
  Sec. 201. Notification of extent to which health benefits can be 
                              modified or terminated.
  Sec. 202. Protection of retirees under certain collectively bargained 
                              agreements.
  Sec. 203. Comptroller General report.
  
   TITLE I--FAIRNESS FOR EMPLOYEES AND RETIREES IN CORPORATE BANKRUPTCIES
  
  SEC. 101. PROHIBITION OF UNFAIR REDUCTIONS TO EMPLOYEE AND RETIREE 
                BENEFITS.
  
      (a) Collective Bargaining Agreements.--Section 1113 of title 11, 
  United States Code, is amended--
              (1) in subsection (b)--
                      (A) in paragraph (1)(A), by striking ``necessary 
                  modifications in the employees benefits and protections 
                  that are necessary to permit the reorganization of the 
                  debtor'' and insert ``minimum modifications in the 
                  employees benefits and protections that are necessary 
                  to prevent the liquidation of the debtor''; and
                      (B) by adding at the end the following:
              ``(3)(A) If the proposal made under paragraph (1) provides 
          for a modification of the health insurance benefits of 
          employees of the debtor, the proposal shall provide for a 
          modification of the health insurance benefits of officers and 
          directors of the debtor--
                      ``(i) to, at a minimum, be comparable to the 
                  modification of health insurance benefits of employees 
                  of the debtor; and
                      ``(ii) such that the health insurance benefits of 
                  officers and directors are not more generous than those 
                  of employees of the debtor.
              ``(B) If the proposal made under paragraph (1) provides for 
          a modification of any benefit of employees of the debtor other 
          than health insurance benefits, including wages and pension 
          benefits, the proposal shall provide for a modification of such 
          benefit of officers and directors of the debtor that is, at a 
          minimum, in an amount equal to the percentage by which such 
          benefit of employees of the debtor was modified.'';
              (2) in subsection (c)--
                      (A) in paragraph (1), by striking ``subsection 
                  (b)(1)'' and inserting ``paragraphs (1) and (3) of 
                  subsection (b)'';
                      (B) by redesignating paragraphs (2) and (3) as 
                  paragraphs (3) and (4), respectively; and
                      (C) by inserting after paragraph (1) the following:
              ``(2) the debtor established by clear and convincing 
          evidence that any modification of the benefits and protections 
          of an employee of the debtor proposed under subsection (b)(1) 
          is the minimum modification necessary to prevent the 
          liquidation of the debtor;''; and
              (3) by adding at the end the following:
      ``(g) The rejection of a collective bargaining agreement under this 
  section constitutes a breach of the agreement, and shall entitle 
  employees of the debtor to a claim for damages.''.
      (b) Health Insurance Benefits of Retired Employees.--Section 1114 
  of title 11, United States Code, is amended--
              (1) in subsection (f)--
                      (A) in paragraph (1)(A), by striking ``necessary 
                  modifications in the retiree benefits that are 
                  necessary to permit the reorganization of the debtor'' 
                  and insert ``minimum modifications in the retiree 
                  benefits that are necessary to prevent the liquidation 
                  of the debtor''; and
                      (B) by adding at the end the following:
      ``(3) If the proposal made under paragraph (1) provides for a 
  modification of the health insurance benefits of retired employees of 
  the debtor, the proposal shall provide for a modification of the health 
  insurance benefits of officers and directors of the debtor--
              ``(A) to, at a minimum, be comparable to the modification 
          of health insurance benefits of retired employees of the 
          debtor; and
              ``(B) such that the health insurance benefits of officers 
          and directors are not more generous than those of retired 
          employees of the debtor.''; and
              (2) in subsection (g)(3), by striking ``necessary to permit 
          the reorganization of the debtor'' and insert ``the minimum 
          modification necessary to prevent the liquidation of the 
          debtor''.
  
  SEC. 102. PAYMENT OF INSURANCE BENEFITS TO RETIREES.
  
      (a) In General.--Section 1114(j) of title 11, United States Code, 
  is amended to read as follows:
      ``(j)(1) No claim for retiree benefits shall be limited by section 
  502(b)(7).
      ``(2)(A) 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).
      ``(B)(i) In accordance with section 1129(a)(13)(B), a debtor shall 
  pay a retired employee with a claim under subparagraph (A)--
              ``(I) 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
              ``(II) 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.).
      ``(ii) 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.
      ``(iii) The amount paid by a debtor under this subparagraph shall 
  not exceed the amount of the claim under subparagraph (A).
      ``(C) Any amount of the claim under subparagraph (A) that is not 
  paid under subparagraph (B) shall be a general unsecured claim.''.
      (b) Confirmation of Plan.--Section 1129(a)(13) of title 11, United 
  States Code, is amended to read as follows:
              ``(13) The plan provides--
                      ``(A) 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
                      ``(B) 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).''.
  
  SEC. 103. FAIR TREATMENT OF COMPENSATION.
  
      (a) Prohibition of Bonus Payments.--Section 503(c) of title 11, 
  United States Code, is amended--
              (1) in paragraph (2)(B), by striking ``or'' at the end;
              (2) by redesignating paragraph (3) as paragraph (4); and
              (3) by inserting after paragraph (2) the following:
              ``(3) a bonus payment to an insider of the debtor, 
          including an incentive-based bonus payment; or''.
      (b) Increased Priority Claim Amount for Employee Wages and 
  Benefits.--Section 507(a) of title 11, United States Code, is amended--
              (1) in paragraph (4)--
                      (A) by striking ``$10,000'' and inserting 
                  ``$25,000''; and
                      (B) by striking ``180 days'' and inserting ``1 
                  year''; and
              (2) in paragraph (5)--
                      (A) in subparagraph (A), by striking ``180 days'' 
                  and inserting ``1 year''; and
                      (B) in subparagraph (B)(i), by striking ``$10,000'' 
                  and inserting ``$25,000''.
      (c) Recovery of Excess Compensation.--Section 547 of title 11, 
  United States Code, is amended by adding at the end the following:
      ``(j) The court, upon motion of a party in interest, may prohibit a 
  transfer of compensation made to an insider of the debtor within 1 year 
  before the date on which the petition is filed if the court finds, 
  after notice and hearing, that the transfer--
              ``(1) was not made in the ordinary course of business; or
              ``(2) resulted in unjust enrichment.''.
  
  SEC. 104. VENUE; CHANGE OF VENUE.
  
      Chapter 87 of title 28, United States Code, is amended--
              (1) by amending section 1408 to read as follows:
  ``Sec. 1408. Venue of cases under title 11
      ``Except as provided in section 1410, a case under title 11 shall 
  be commenced in the district court for the district in which the 
  largest share of employees, retired employees, physical assets, and 
  operations of the person or entity that is the subject of the case were 
  located in the year immediately preceding the commencement of the 
  case.''; and
              (2) in section 1412, by striking ``to a district court for 
          another district'' and inserting ``to the district court for 
          the district in which the principal place of business in the 
          United States of the person or entity that is the subject of 
          the case was located in the year immediately preceding the 
          commencement of the case''.
  
  SEC. 105. PROTECTION OF BENEFITS IN CHAPTER 9 BANKRUPTCY.
  
      Section 901(a) of title 11, United States Code, is amended--
              (1) by inserting ``507(a)(4), 507(a)(5),'' after 
          ``507(a)(2)'';
              (2) by inserting ``1113, 1114,'' after ``1111(b)''; and
              (3) by inserting ``1129(a)(13),'' after ``1129(a)(10)''.
  
  SEC. 106. REQUIREMENT TO MAKE PENSION CONTRIBUTIONS.
  
      (a) Requirement To Pay Minimum Funding Contributions.--Subchapter I 
  of chapter 11 of title 11, United States Code, is amended by adding at 
  the end the following:
  ``Sec. 1117. Duty of debtor in possession to make required pension 
                contributions
      ``(a) Definitions.--In this section--
              ``(1) the term `pension plan' has the meaning given that 
          term under section 3 of the Employee Retirement Income Security 
          Act of 1974 (29 U.S.C. 1002); and
              ``(2) the term `required pension contributions' means 
          contributions necessary to satisfy the minimum funding 
          standards under sections 412 and 430 of the Internal Revenue 
          Code of 1986 and sections 302 and 303 of the Employee 
          Retirement Income Security Act of 1974 (29 U.S.C. 1082 and 
          1083), including any required installment contributions.
      ``(b) Requirement.--A debtor in possession that sponsors a pension 
  plan or is a member of the controlled group with respect to such a 
  plan, or the trustee of the debtor in possession, shall--
              ``(1) make all required pension contributions to the 
          pension plan that become due after the filing of the petition; 
          and
              ``(2) make such contributions on or before the due dates 
          specified in section 430(j) of the Internal Revenue Code and 
          section 303(j) of the Employee Retirement Income Security Act 
          of 1974 (29 U.S.C. 1083(j)).''.
      (b) Treatment as Administrative Expenses.--Section 503(b) of title 
  11, United States Code, is amended--
              (1) in paragraph (8)(B), by striking ``and'' at the end;
              (2) in paragraph (9), by striking the period at the end and 
          inserting ``; and''; and
              (3) by adding at the end the following:
              ``(10) any required pension contributions under section 
          1117 due to be made after the filing of the petition that are 
          unpaid.''.
      (c) Perfection of Statutory Liens for Missed Pension 
  Contributions.--Section 362(b) of title 11, United States Code, is 
  amended--
              (1) in paragraph (27), by striking ``and'' at the end;
              (2) in paragraph (28), by striking the period at the end 
          and inserting ``; and''; and
              (3) by adding at the end the following:
              ``(29) under subsection (a), of any act to perfect, or to 
          maintain or continue the perfection of, a statutory lien 
          imposed by section 430(k) of the Internal Revenue Code of 1986 
          or section 303(k) of the Employee Retirement Income Security 
          Act (29 U.S.C. 1083(k)) (which shall not be voidable under 
          section 545 of this title), for failure to make contribution 
          payments required under those sections, without regard to 
          whether such contributions became due or whether such lien 
          arose before or after the filing of the petition.''.
  
        TITLE II--PROTECTION OF EMPLOYEE AND RETIREE HEALTH BENEFITS
  
  SEC. 201. NOTIFICATION OF EXTENT TO WHICH HEALTH BENEFITS CAN BE 
                MODIFIED OR TERMINATED.
  
      (a) Inclusion in Summary Plan Description.--Section 102(b) of the 
  Employee Retirement Income Security Act of 1974 (29 U.S.C. 1022) is 
  amended by inserting ``; in the case of a group health plan (as so 
  defined), whether the provisions of the plan permit the plan sponsor or 
  any employer participating in the plan to unilaterally modify or 
  terminate the benefits under the plan with respect to employees, 
  retired employees, and beneficiaries, and when and to what extent 
  benefits under the plan are fully vested with respect to employees, 
  retired employees, and beneficiaries'' after ``the name and address of 
  such issuer''.
      (b) Presumption That Retired Employee Health Benefits Cannot Be 
  Modified or Terminated.--Section 502 of the Employee Retirement Income 
  Security Act of 1974 (29 U.S.C. 1132) is amended by adding at the end 
  the following new subsection:
      ``(n) In the case of a suit brought under this title by a 
  participant or beneficiary relating to benefits of a retired employee 
  or the dependents of a retired employee under a group health plan (as 
  defined in section 733(a)(1)), the presumption for purposes of such 
  suit shall be that as of the date an employee retires or completes 20 
  years of service with the employer, benefits available under the plan 
  during retirement of the employee are fully vested and cannot be 
  modified or terminated for the life of the employee or, if longer, the 
  life of the employee's spouse. This presumption can be overcome only 
  upon a showing, by clear and convincing evidence, that the terms of the 
  group health plan allow for a modification or termination of benefits 
  available under the plan and that the employee, prior to becoming a 
  participant in the plan, was made aware, in clear and unambiguous 
  terms, that the plan allowed for such modification or termination of 
  benefits.''.
  
  SEC. 202. PROTECTION OF RETIREES UNDER CERTAIN COLLECTIVELY BARGAINED 
                AGREEMENTS.
  
      Section 8 of the National Labor Relations Act (29 U.S.C. 158) is 
  amended by adding at the end the following:
      ``(h) It shall be an unfair labor practice for any labor 
  organization and any employer to enter into any contract or agreement, 
  express or implied, whereby the organization and employer agree to 
  modify the terms of any previous agreement in a manner that would 
  result in a reduction or termination of retiree health insurance 
  benefits provided to an employee or a dependent of an employee under 
  the previous agreement, if such modification of the terms of the 
  previous agreement occurs after the date on which the employee 
  retires.''.
  
  SEC. 203. COMPTROLLER GENERAL REPORT.
  
      (a) In General.--Not later than 180 days after the date of 
  enactment of this Act, the Comptroller General of the United States 
  shall submit to Congress a report on the strategies that corporations 
  use to avoid obligations to pay promised employee and retiree benefits.
      (b) Contents.--The report under subsection (a) shall include a 
  discussion of--
              (1) the use of spin-offs, mergers, subsidiaries, 
          bankruptcies, asset sales, and other strategies to avoid 
          obligations to pay promised employee and retiree benefits;
              (2) the impact of such avoidance on the financial, 
          physical, and mental well-being of employees and retirees;
              (3) the impact on Federal and State budgets when employers 
          terminate or reduce the benefits of employees and retirees, 
          including the costs that are incurred when employees and 
          retirees seek assistance from Federal and State government 
          programs and services as a result of the termination or 
          reduction of their employment-related benefits; and
              (4) recommendations to prevent corporations from evading 
          contractual obligations to pay employee and retiree benefits.
target: Bankruptcy Fairness and Employee Benefits Protection Act of 2014 - Amends federal bankruptcy law to require the debtor in possession, prior to filing an application seeking rejection of a collective bargaining agreement, to propose only those minimum modifications to employee and retiree benefits and protections (including health insurance) that are necessary to prevent liquidation of the debtor.  Requires a proposal which modifies employee or retired employee health insurance benefits to modify also the health insurance benefits of the debtor's officers and directors so that their benefits are not more generous than those of debtor's employees.  Requires a proposal which modifies other employee benefits, including wages and pension benefits, also to modify such benefits of the debtor's officers and directors by an amount that, at a minimum, is equal to the percentage by which the employees' benefits are modified.  Conditions court approval of an application for rejection of a collective bargaining agreement upon a finding that the debtor has established by clear and convincing evidence that modification of employee benefits and protections is the minimum modification necessary to prevent the debtor's liquidation.  Declares that rejection of a collective bargaining agreement constitutes a breach of the agreement that entitles debtor's employees to a claim for damages. Grants any retirees whose benefits are modified by a court according to certain procedures a claim equal to the value of benefits lost as a result of the modification. Requires a debtor to pay cash to a retired employee making a claim in an amount equal to the two-year cost of premiums for: (1) continuation coverage; or (2) a comparable health insurance plan offered through a health care exchange established under the Patient Protection and Affordable Care Act.  Authorizes the court to require the debtor to pay such retiree claim in an amount equal to the cost of premiums for continuation of coverage, or for such a health insurance plan, for more than two years.  Prohibits allowance or payment of a bonus payment to an insider of the debtor, including an incentive-based bonus payment.   Increases the priority claim amount for employee wages and benefits.  Authorizes the court to prohibit a transfer of compensation made to an insider of the debtor within one year before the petition is filed if it finds that the transfer: (1) was not made in the ordinary course of business, or (2) resulted in unjust enrichment.  Amends the Judicial Code to require that a case under bankruptcy law be commenced in the district court for the district in which the largest share of employees, retired employees, physical assets, and operations of the person or entity that is the subject of the case were located in the year immediately preceding commencement of the case.  Requires a debtor in possession that sponsors a pension plan or is a member of the controlled group with respect to such a plan, or the trustee of the debtor in possession, to make all required pension contributions that fall due after filing the petition in bankruptcy.  Amends the Employee Retirement Income Security Act of 1974 (ERISA) to require the mandatory summary description of a group health plan to declare: (1) whether the plan permits either the plan sponsor or any participating employer to unilaterally modify or terminate plan benefits affecting employees, retirees, and beneficiaries; and (2) when and to what extent plan benefits are fully vested with respect to these individuals. Presumes that retiree health benefits cannot be modified or terminated as of the date an employee retires or completes 20 years of service with the employer. Allows this presumption to be overcome only upon a showing, by clear and convincing evidence, that the employee, before becoming a plan participant, was made aware, in clear and unambiguous terms, that the plan allowed for such a modification or termination of benefits.  Amends the National Labor Relations Act to make it an unfair labor practice for a labor organization and employer to enter into a contract or agreement to modify a previous agreement in a manner that results in a reduction or termination of retiree health insurance benefits, if the modification occurs after the retiree's retirement date.  Directs the Comptroller General (GAO) to report to Congress on strategies used by corporations to avoid obligations to pay promised employee and retiree benefits. 
feat_title: Bankruptcy Fairness and Employee Benefits Protection Act of 2014