To amend title I of the Employee Retirement Income Security Act of 1974 to provide for treatment of certain deferred executive compensation arrangements which is comparable to certain funding-based limits on benefits and benefit accruals imposed on defined benefit pension plans under the Pension Protection Act of 2006.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Worker-Executive Parity Act of 
2009''.

SEC. 2. TREATMENT FOR COVERED DEFERRED EXECUTIVE COMPENSATION 
              ARRANGEMENTS WHICH IS COMPARABLE TO CERTAIN FUNDING-BASED 
              LIMITS ON BENEFITS AND BENEFIT ACCRUALS IMPOSED ON 
              DEFINED BENEFIT PENSION PLANS.

    (a) In General.--Section 206(g) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1056(g)) is amended--
            (1) by redesignating paragraphs (9) and (10) as paragraphs 
        (10) and (11), respectively; and
            (2) by inserting after paragraph (8) the following new 
        paragraph:
            ``(9) Comparable treatment for covered deferred executive 
        compensation arrangements.--
                    ``(A) In general.--In any case in which a 
                limitation applies under paragraph (2), (3), or (4) for 
                any plan year in the case of a defined benefit plan 
                which is a single-employer plan--
                            ``(i) no amount of deferred compensation 
                        may accrue to a disqualified individual during 
                        such plan year under the terms of any covered 
                        deferred executive compensation arrangement 
                        maintained by the plan sponsor (irrespective of 
                        whether the accrual in deferred compensation is 
                        expressed in the form of a promise, a 
                        guarantee, or any other representation), and
                            ``(ii) in the case of such an arrangement 
                        established during or after the 1-year period 
                        preceding such plan year (or any amendment to 
                        such an arrangement if such amendment is 
                        adopted during or after such 1-year period), no 
                        distribution of accrued deferred compensation 
                        may be made under such arrangement (or such 
                        amendment) to a disqualified individual during 
                        such plan year.
                    ``(B) Covered deferred executive compensation 
                arrangement defined.--
                            ``(i) In general.--For purposes of this 
                        paragraph, the term `covered deferred executive 
                        compensation arrangement' means any arrangement 
                        providing for the deferral of compensation of a 
                        disqualified individual, whether or not--
                                    ``(I) compensation of the 
                                disqualified individual which is 
                                deferred under such arrangement is 
                                subject to substantial risk of 
                                forfeiture,
                                    ``(II) the disqualified 
                                individual's rights to the compensation 
                                deferred under the arrangement are no 
                                greater than the rights of a general 
                                creditor of the plan sponsor,
                                    ``(III) all amounts set aside 
                                (directly or indirectly) for purposes 
                                of paying the deferred compensation 
                                (including income), and all income 
                                attributable to such amounts, remain 
                                (until made available to the 
                                disqualified individual or other 
                                beneficiary) solely the property of the 
                                plan sponsor (without being restricted 
                                to the provision of benefits under the 
                                arrangement),
                                    ``(IV) the amounts referred to in 
                                subclause (III) are available to 
                                satisfy the claims of the plan 
                                sponsor's general creditors at all 
                                times (not merely after bankruptcy or 
                                insolvency), and
                                    ``(V) some or all of the 
                                compensation of the disqualified 
                                individual which is deferred under such 
                                arrangement is guaranteed by an 
                                insurance company, insurance service, 
                                or other similar organization.
                            ``(ii) Exception for qualified 
                        arrangements.--Such term shall not include a 
                        arrangement that is--
                                    ``(I) described in section 
                                219(g)(5)(A) of the Internal Revenue 
                                Code of 1986, or
                                    ``(II) an eligible deferred 
                                compensation plan (as defined in 
                                section 457(b) of such Code) of an 
                                eligible employer described in section 
                                457(e)(1)(A) of such Code.
                    ``(C) Disqualified individual defined.--For 
                purposes of this paragraph, the term `disqualified 
                individual' means a director or executive officer of 
                the plan sponsor.''.
    (b) Effective Date.--The amendments made by this section shall 
apply with respect to plan years beginning on or after the date of the 
enactment of this Act.

Summary: Worker-Executive Parity Act of 2009 - Amends the Employee Retirement Income Security Act of 1974 (ERISA), in instances where a single-employer defined benefit pension plan is subject to certain funding-based limits on benefits and benefit accruals under the Pension Protection Act of 2006, to prohibit: (1) the accrual of deferred compensation to a disqualified individual pursuant to a covered deferred executive compensation arrangement during a plan year. And (2) the distribution of accrued deferred compensation to such individual during a plan year when such arrangements are established during or after the one-year period preceding the plan year.