|
||||||||||||||||||||
|
||||||||||||||||||||
| ||||||||||||||||||||
| ||||||||||||||||||||
| ||||||||||||||||||||
1 | AN ACT concerning employment benefits.
| |||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| |||||||||||||||||||
3 | represented in the General Assembly:
| |||||||||||||||||||
4 | Section 1. Short title. This Act may be cited as the | |||||||||||||||||||
5 | Employee and Retiree Benefit Protection Act. | |||||||||||||||||||
6 | Section 5. Definitions. As used in this Act: | |||||||||||||||||||
7 | "Employee" means a person employed by an employer and who | |||||||||||||||||||
8 | resides within the State of Illinois or who is employed in the | |||||||||||||||||||
9 | State of Illinois. | |||||||||||||||||||
10 | "Employer" means a person that employs one or more | |||||||||||||||||||
11 | individuals in the State of Illinois; however, "employer" does | |||||||||||||||||||
12 | not include any federal, State, or local governmental entity or | |||||||||||||||||||
13 | any school district. | |||||||||||||||||||
14 | "Health benefits" means benefits provided in accordance | |||||||||||||||||||
15 | with a plan under which an employer agrees or otherwise | |||||||||||||||||||
16 | undertakes to pay for or reimburse some or all of the costs of | |||||||||||||||||||
17 | health care products or services incurred by some or all of its | |||||||||||||||||||
18 | employees and retirees, regardless of whether those benefits | |||||||||||||||||||
19 | are provided by means of health insurance, a health maintenance | |||||||||||||||||||
20 | organization, or any other means, regardless of whether an | |||||||||||||||||||
21 | employee or retiree must pay co-payments, deductibles, or | |||||||||||||||||||
22 | contributions as a condition of coverage, and regardless of | |||||||||||||||||||
23 | whether the employee's or retiree's dependents or household | |||||||||||||||||||
24 | members are also covered under the plan. | |||||||||||||||||||
25 | "Pension benefits" means any benefits provided by an | |||||||||||||||||||
26 | employer under a pension plan as the term "pension plan" is | |||||||||||||||||||
27 | defined in Section 1002 of the federal Employee Retirement | |||||||||||||||||||
28 | Income Security Act, as now or hereafter amended, other than | |||||||||||||||||||
29 | benefits that are insured by the federal government and paid by | |||||||||||||||||||
30 | the Pension Benefit Guaranty Corporation. | |||||||||||||||||||
31 | "Retiree" means a person who was formerly employed by an | |||||||||||||||||||
32 | employer and who is eligible to receive health or pension |
| |||||||
| |||||||
1 | benefits, or both, from or through the employer on the basis of | ||||||
2 | having been employed by the employer at a plant, facility, or | ||||||
3 | other workplace located within the State of Illinois and having | ||||||
4 | met any additional qualifications established by the employer. | ||||||
5 | Section 10. Priority of claims in bankruptcy proceedings. | ||||||
6 | Notwithstanding Section 507 of the federal Bankruptcy Code to | ||||||
7 | the contrary, for an employer in bankruptcy under the federal | ||||||
8 | Bankruptcy Code, whether voluntary or involuntary, and who | ||||||
9 | before bankruptcy proceedings has provided its employees and | ||||||
10 | retirees with health or pension benefits, or both, the | ||||||
11 | following expenses and claims against that employer have | ||||||
12 | priority in the following order: | ||||||
13 | (1) First, administrative expenses, fees, and charges | ||||||
14 | as provided in Section 507 of the federal Bankruptcy Code, | ||||||
15 | as now or hereafter amended. | ||||||
16 | (2) Second, allowed unsecured claims for wages, | ||||||
17 | salaries, and commissions as provided in Section 507 of the | ||||||
18 | federal Bankruptcy Code, as now or hereafter amended. | ||||||
19 | (3) Third, allowed unsecured claims for contributions | ||||||
20 | to employee and retiree benefit plans, including health and | ||||||
21 | pension benefits, arising from all past, present, and | ||||||
22 | future obligations of the employer to fully fund those | ||||||
23 | plans, regardless of any discharge of obligations in | ||||||
24 | bankruptcy proceedings. | ||||||
25 | (4) Fourth and thereafter, the priorities shall be | ||||||
26 | those as established under Section 507 of the federal | ||||||
27 | Bankruptcy Code not otherwise covered by item (1), (2), or | ||||||
28 | (3) of this Section. | ||||||
29 | Section 15. Continuing obligation to provide health | ||||||
30 | insurance. Notwithstanding any provisions of the federal | ||||||
31 | Bankruptcy Code, the federal Employee Retirement Income | ||||||
32 | Security Act, or the federal Consolidated Omnibus Budget | ||||||
33 | Reconciliation Act to the contrary, employee and retiree health | ||||||
34 | and pension benefits provided to an employee or retiree shall |
| |||||||
| |||||||
1 | be continued to be provided to the employee or retiree in the | ||||||
2 | same manner and with the same benefits that would otherwise | ||||||
3 | have been provided to that employee or retiree if the employer | ||||||
4 | had not been subject to bankruptcy proceedings. The bankruptcy | ||||||
5 | trustee shall preserve a sufficient amount of the assets of the | ||||||
6 | bankrupt employer to continue to pay for that coverage. | ||||||
7 | Section 99. Effective date. This Act takes effect upon | ||||||
8 | becoming law.
|