To impose a 6-month moratorium on terminations of certain plans instituted under section 4042 of the Employee Retirement Income Security Act of 1974 in cases in which reorganization of contributing sponsors is sought in bankruptcy or insolvency proceedings.

May 26, 2005

Mr. KENNEDY (for himself, Mr. AKAKA, and Mr. LAUTENBERG) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions

To impose a 6-month moratorium on terminations of certain plans instituted under section 4042 of the Employee Retirement Income Security Act of 1974 in cases in which reorganization of contributing sponsors is sought in bankruptcy or insolvency proceedings.

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 `Stop Terminating Our Pensions Act'.

SEC. 2. 6-MONTH MORATORIUM ON CERTAIN PLAN TERMINATIONS COMMENCED BY THE PENSION BENEFIT GUARANTY CORPORATION.

(a) In General- During the 6-month period beginning on May 1, 2005, the Pension Benefit Guaranty Corporation may not commence proceedings under section 4042 of the Employee Retirement Income Security Act of 1974 to terminate a plan to which this section applies or execute termination or trustee agreements with respect to such plan under such section 4042, and any trustee appointed under such section may not terminate such plan.

(b) Application to Plans- This section applies to a single-employer plan if--

(1) the unfunded benefit liabilities (as defined in section 4001(a)(18) of such Act) of the plan (determined as of the proposed termination date) are at least $1,000,000,000; and

(2) a contributing sponsor of such plan has filed, or has had filed against such sponsor, a petition in a case under title 11, United States Code, or under any similar law of a State or political subdivision of a State seeking reorganization, including such a case in which liquidation was sought but which has been converted to a case in which reorganization is sought.

(c) Restoration- In any case in which, during the period described in subsection (a) and before the date of the enactment of this Act, the Pension Benefit Guaranty Corporation has commenced termination proceedings or executed a termination or trustee agreement subject to the moratorium provided under subsection (a), or a trustee appointed under section 4042 of the Employee Retirement Income Security Act of 1974 subject to such moratorium with respect to such a plan has terminated such plan, the Corporation or trustee shall cease any activities undertaken to terminate the plan and shall take whatever action is necessary and within the power thereof to restore the plan to its status prior to the commencement of such proceedings.

END