I 

113TH CONGRESS 

1ST SESSION H. R. 2425 

To amend title I of the Employee Retirement Income Security Act of 1974 

to provide protection for company-provided retiree health benefits. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 18, 2013 

Mr. TIERNEY (for himself, Mr. GEORGE MILLER of California, Mr. ANDREWS, 

and Mr. JONES) introduced the following bill; which was referred to the 

Committee on Education and the Workforce 

A BILL 

To amend title I of the Employee Retirement Income Security Act of 1974 to provide protection for companyprovided retiree health benefits. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Earned Retiree 

5 Healthcare Benefits Protection Act of 2013’’. 

6 SEC. 2. FINDINGS AND PURPOSES. 

7 (a) FINDINGS.—The Congress finds the following: 

8 (1) Retired participants of group health plans 

9 regulated by the Employee Retirement Income SecuVerDate Mar 15 2010 00:49 Jun 22, 2013 Jkt 029200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2425.IH H2425

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1 rity Act of 1974 (ERISA) have been severely 

2 harmed by the virtually unchecked practices of spon3 sors of such plans involving the post-retirement can4 cellation or reduction of earned health benefits con5 trary to assurances retirees received prior to retire6 ment that such benefits would be with them for life. 

7 (2) Such widespread post-retirement reductions 

8 in retiree health benefits has led to a crisis in retiree 

9 health care in which retirees— 

10 (A) have been unable to substitute indi11 vidual coverage for the group coverage they 

12 lost, or, in order to obtain individual coverage, 

13 have jeopardized their economic security in re14 tirement; 

15 (B) because of preexisting medical condi16 tions cannot obtain substitute coverage that 

17 they can afford without depleting their life sav18 ings or have been unable to obtain adequate 

19 medical care or medical care they had relied on 

20 to deal with serious illness; 

21 (C) have sustained catastrophic illnesses or 

22 injuries or otherwise experienced a marked de23 terioration in their medical conditions or health 

24 as a result of post-retirement changes to their 

25 medical benefits; 


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1 (D) have been transferred indiscriminately 

2 into improperly or inadequately managed health 

3 maintenance organizations or other managed 

4 care entities, resulting in the worsening rather 

5 than improvement of prior medical conditions; 

6 and 

7 (E) in many instances, have failed to ob8 tain adequate relief in the courts due to highly 

9 restrictive judicial interpretations which are in10 consistent with ERISA’s underlying protective 

11 purposes. 

12 (3) The crisis in retiree healthcare generated by 

13 the plan sponsor practice of post-retirement can14 cellations or reductions of previously promised 

15 earned retiree health benefits has led to a wide16 spread loss of confidence in the integrity of ERISA17 regulated group health plans and the ability of 

18 ERISA itself to adequately protect retiree health 

19 benefits. 

20 (4) A strong and dependable private sector re21 tiree health system is a necessary component to the 

22 essential health of our Nation’s senior citizens. 

23 (b) PURPOSES.— 

24 (1) IN GENERAL.—The purposes of this Act are 

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1 tions of retirees from ERISA-regulated group health 

2 plans are fulfilled, to minimize the incidence of pro3 longed legal disputes arising out of the post-retire4 ment cancellation or reduction of earned retiree 

5 health benefits from such plans, and to prevent fur6 ther adverse effects on retiree health arising from 

7 such post-retirement changes. 

8 (2) FUTURE SAFEGUARDS AND ENFORCEABLE

9 OBLIGATIONS.—To carry out the purposes described 

10 in paragraph (1): 

11 (A) The provisions of this Act safeguard 

12 retired participants of group health plans sub13 ject to ERISA from loss or reduction of their 

14 health benefits from such plans by barring plan 

15 sponsors from canceling or reducing such bene16 fits after the dates such participants retire and 

17 when they no longer are able to absorb such 

18 losses or reductions without experiencing ad19 verse effects on their health or finances. 

20 (B) The provisions of this Act also estab21 lish an enforceable obligation on the part of 

22 sponsors of such group health plans to restore 

23 health benefits previously taken away from re24 tired participants of such plans to the extent 

25 such benefits were cancelled or altered after the 


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1 dates such participants retired. The obligation 

2 is limited to restoring healthcare benefits only 

3 back to specified levels, and the obligation does 

4 not apply if the plan sponsor would sustain sub5 stantial business hardship by restoring such 

6 benefits. 

7 SEC. 3. RETIREE HEALTH BENEFIT PROTECTIONS IN 

8 GROUP HEALTH PLANS. 

9 (a) IN GENERAL.—Subtitle B of title I of the Em10 ployee Retirement Income Security Act of 1974 is amend11 ed by adding at the end the following new part: 

12 ‘‘PART 8—EMERGENCY RETIREE HEALTH 

13 BENEFIT PROTECTIONS 

14 ‘‘SEC. 801. PROHIBITION AGAINST POST-RETIREMENT RE15 DUCTIONS OF RETIREE HEALTH BENEFITS 

16 BY GROUP HEALTH PLANS. 

17 ‘‘(a) IN GENERAL.—Notwithstanding that a group 

18 health plan described in subsection (b) may contain a pro19 vision reserving the general power to amend or terminate 

20 the plan or a provision specifically authorizing the plan 

21 to make post-retirement reductions in retiree health bene22 fits, the benefits provided to a retired participant or his 

23 or her beneficiary under the terms of the plan may not 

24 be reduced, whether through amendment or otherwise, if 

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1 pant has retired for purposes of the plan and reduces ben2 efits that were provided to the participant, or his or her 

3 beneficiary, as of the date the participant retired. Any 

4 group health plan provision which is purported to author5 ize the reduction of benefits in a manner inconsistent with 

6 the preceding sentence shall be void as against public pol7 icy. 

8 ‘‘(b) GROUP HEALTH PLAN.—For purposes of this 

9 part, the term ‘group health plan’ has the same meaning 

10 as in section 607(1). 

11 ‘‘(c) PROHIBITED REDUCTION OF BENEFITS.—For 

12 purposes of this part, any reference to a reduction of bene13 fits shall be construed to be a reference to any amendment 

14 to a group health plan, or to any other action, which has 

15 the effect of— 

16 ‘‘(1) canceling, decreasing, or limiting the 

17 amount, type, or form of any benefit or option pro18 vided prior to the amendment or action; 

19 ‘‘(2) imposing or increasing out-of-pocket costs 

20 that a retired participant, or his or her beneficiary, 

21 must pay in order for benefits that were provided 

22 under the plan to the participant or beneficiary prior 

23 to the amendment or action to be provided to the 

24 participant or beneficiary after the amendment or 

25 action; or 


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1 ‘‘(3) modifying the manner by which medical 

2 services are delivered under the plan so that after 

3 the amendment or action a retired participant, or 

4 his or her beneficiary, has less ready access to the 

5 delivery of any such medical services than the partic6 ipant or beneficiary had prior to the amendment or 

7 action. 

8 ‘‘(d) TREATMENT OF PLAN TERMINATION.— 

9 ‘‘(1) IN GENERAL.—Subject to paragraph (2), a 

10 termination of a group health plan shall be treated 

11 as a reduction in benefits prohibited under sub12 section (a) if, after the termination, the plan sponsor 

13 of the terminated plan fails to continue to provide 

14 to the participants who retired prior to the termi15 nation and to their beneficiaries the same retiree 

16 health benefits that were provided prior to the termi17 nation. 

18 ‘‘(2) WAIVER.—Paragraph (1) shall not apply 

19 in the case of the termination of a group health plan 

20 if the Secretary issues a waiver under this para21 graph in connection with such termination. The Sec22 retary shall issue such a waiver if and only if the 

23 plan sponsor demonstrates to the satisfaction of the 

24 Secretary, in accordance with regulations prescribed 

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1 able to continue in business unless such a waiver is 

2 issued. 

3 ‘‘SEC. 802. ADOPTION BY GROUP HEALTH PLANS OF PROVI4 SION BARRING POST-RETIREMENT REDUC5 TIONS IN RETIREE HEALTH BENEFITS. 

6 ‘‘Each group health plan which provides, as of the 

7 date of a participant’s retirement under the plan, benefits 

8 after such date with respect to such participant or his or 

9 her beneficiaries shall contain a provision which expressly 

10 bars any reduction in such benefits after such date, either 

11 under the terms of the plan or by any fiduciary of the 

12 plan. 

13 ‘‘SEC. 803. RESTORATION BY GROUP HEALTH PLANS OF 

14 BENEFITS REDUCED AFTER RETIREMENT. 

15 ‘‘(a) IN GENERAL.—The plan sponsor of each group 

16 health plan shall provide, in accordance with this section, 

17 benefit restoration under this section to each retired par18 ticipant that meets the following requirements: 

19 ‘‘(1) The retired participant is entitled to ben20 efit coverage under the plan as of the date of the en21 actment of the Earned Retiree Healthcare Benefits 

22 Protection Act of 2013. 

23 ‘‘(2) The participant retired under the plan be24 fore the date of the enactment of such Act, and a 

25 reduction in benefits, with respect to any benefit or 


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1 option provided to the retired participant under the 

2 plan as of the date the participant retired, took ef3 fect after the participant’s date of retirement and 

4 before the date of the enactment of such Act. 

5 ‘‘(3) The retired participant has elected to re6 store benefits under the plan within the restoration 

7 period prescribed pursuant to subsection (b) and in 

8 accordance with such procedures as may be estab9 lished under the plan pursuant to regulations of the 

10 Secretary. 

11 ‘‘(b) RESTORATION PERIOD.—For purposes of this 

12 section, the term ‘restoration period’ means a period which 

13 shall be prescribed by the Secretary and which— 

14 ‘‘(1) begins not later than 1 year after the date 

15 of the enactment of the Earned Retiree Healthcare 

16 Benefits Protection Act of 2013; 

17 ‘‘(2) ends before the end of the 2-year period 

18 beginning with such date, or such longer period as 

19 may result from a suspension of such 2-year period 

20 by the Secretary pursuant to section 804(g); and 

21 ‘‘(3) is of no less than 60 days duration. 

22 ‘‘(c) APPLICABLE STANDARDS FOR RESTORATION OF

23 BENEFITS.— 


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1 ‘‘(1) IN GENERAL.—For purposes of this sec2 tion, reduced benefits shall be deemed restored 

3 under this section— 

4 ‘‘(A) in the case of a participant who re5 tired under the plan before the plan year begin6 ning with or during 1991, if the benefits which 

7 were subjected to reduction are restored to the 

8 level of such benefits which was in effect for the 

9 plan year beginning with or during 1991; and 

10 ‘‘(B) in the case of a participant who re11 tired under the plan after the plan year begin12 ning with or during 1990 and before the date 

13 of the enactment of the Earned Retiree 

14 Healthcare Benefits Protection Act of 2013, if 

15 the benefits which were subjected to reduction 

16 are restored to the level of such benefits which 

17 was in effect immediately prior to the reduction. 

18 ‘‘(2) LEVEL OF BENEFITS.—For purposes of 

19 paragraph (1), restoration of benefits to a level re20 quired under paragraph (1) occurs if— 

21 ‘‘(A) any cancellation, decrease, or limita22 tion with respect to the amount, type, or form 

23 of any benefit or option which resulted in the 

24 reduction in benefits is rescinded or lessened so 

25 as to result in the amount, type, and form of 


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1 benefits in effect for the plan year beginning 

2 with or during 1991 (in the case of a partici3 pant described in paragraph (1)(A)) or as of 

4 immediately prior to the reduction (in the case 

5 of a participant described in paragraph (1)(B)); 

6 ‘‘(B) any imposition or increase in out-of7 pocket costs that the participant, or his or her 

8 beneficiary, must pay which resulted in the re9 duction in benefits is rescinded or lessened so 

10 as to result in the level of out-of-pocket costs in 

11 effect for the plan year beginning with or dur12 ing 1991 (in the case of a participant described 

13 in paragraph (1)(A)) or as of immediately prior 

14 to the reduction (in the case of a participant 

15 described in paragraph (1)(B)); and 

16 ‘‘(C) any modification in the manner by 

17 which medical services are delivered under the 

18 plan which resulted in the reduction in benefits 

19 is rescinded or amended so as to result in a 

20 manner by which medical services are delivered 

21 under the plan which is substantially equivalent 

22 to the manner by which medical services are de23 livered in effect for the plan year beginning 

24 with or during 1991 (in the case of a partici25 pant described in paragraph (1)(A)) or as of 


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1 immediately prior to the reduction (in the case 

2 of a participant described in paragraph (1)(B)). 

3 ‘‘(d) EXCEPTION FOR CERTAIN PLANS.—In accord4 ance with regulations prescribed by the Secretary, in the 

5 case of any group health plan which has less than 100 

6 participants as of the date of the enactment of the Earned 

7 Retiree Healthcare Benefits Protection Act of 2013, sub8 section (a) shall apply to such plan only if, at any time 

9 during the period described in subsection (b)(2) (including 

10 any extension thereof), such plan has more than 100 par11 ticipants. 

12 ‘‘(e) NOTICE REQUIREMENTS CONCERNING RES13 TORATION OF BENEFITS.—In accordance with such regu14 lations as may be prescribed by the Secretary, the plan 

15 administrator of each group health plan subject to the re16 quirements of subsection (a) shall, within 30 days prior 

17 to the commencement of the plan’s restoration period, pro18 vide written notice to each retired participant of the plan 

19 who meets the requirements of subsection (a) of the fol20 lowing: 

21 ‘‘(1) A description of all benefits the retired 

22 participant is entitled to have restored. 

23 ‘‘(2) The administrative procedure established 

24 under the plan which may be used to submit a claim 

25 for the restoration of any benefits. 


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1 ‘‘(3) An itemization of the value of each benefit 

2 the retired participant is entitled to have restored, 

3 as determined in accordance with the regulations of 

4 the Secretary, and the total value of all such bene5 fits. 

6 ‘‘(4) A description of any post-retirement in7 creases in retiree health benefits the retired partici8 pant received which the plan sponsor could rescind 

9 if the retired participant asserts a claim for the res10 toration of benefits. 

11 ‘‘(5) An itemization of the value of each retiree 

12 health benefit that the plan sponsor could rescind, 

13 as determined in accordance with the regulations of 

14 the Secretary, and the total value of all such bene15 fits. 

16 ‘‘(6) If the plan sponsor has filed an application 

17 for a substantial business hardship exemption under 

18 section 804, the date on which such application was 

19 filed, the date on which notice of such application 

20 was given to retired participants entitled to submit 

21 a claim for the restoration of benefits, and the sta22 tus of such application as of the date of the notice 

23 sent pursuant to this subsection. 


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1 ‘‘(7) Such other information in such form and 

2 detail as may be prescribed by the Secretary to carry 

3 out the purposes of this part. 

4 ‘‘(f) DEADLINE FOR RESTORATION OF BENEFITS.— 

5 All benefits required to be restored under this section shall 

6 be restored before the end of the 2-year period beginning 

7 with the date of the enactment of the Earned Retiree 

8 Healthcare Benefits Protection Act of 2013, subject to 

9 any suspension of such period under section 804(g). 

10 ‘‘SEC. 804. EXEMPTION FROM RESTORATION OF BENEFITS 

11 REQUIREMENTS. 

12 ‘‘(a) APPLICATION FOR EXEMPTION.—Any plan 

13 sponsor of a group health plan that would sustain substan14 tial business hardship if required to fulfill, in whole or in 

15 part, the restoration of benefits requirements contained in 

16 section 803, may file an application for an exemption with 

17 the Secretary from any or all of such requirements. 

18 ‘‘(b) AUTHORITY FOR WAIVER OR VARIANCE.—In re19 sponse to an application filed by a plan sponsor pursuant 

20 to subsection (a), the Secretary may waive or vary the re21 quirements of section 803 with respect to any or all of 

22 such requirements, including postponing for reasonable 

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1 ance by the plan sponsor with the requirements of section 

2 803 would— 

3 ‘‘(1) be adverse to the interests of plan partici4 pants in the aggregate; 

5 ‘‘(2) not be administratively feasible; and 

6 ‘‘(3) cause substantial business hardship to the 

7 plan sponsor. 

8 ‘‘(c) FACTORS TAKEN INTO ACCOUNT.—For pur9 poses of this section, the factors to be taken into account 

10 in determining substantial business hardship shall include 

11 (but shall not be limited to) whether— 

12 ‘‘(1) the plan sponsor is operating at an eco13 nomic loss; 

14 ‘‘(2) compliance with the restoration of benefits 

15 requirements would necessitate substantial future re16 ductions in health benefits provided to participants 

17 under the plan or cause a substantial decline in em18 ployment with the plan sponsor; and 

19 ‘‘(3) it is reasonable to expect that the plan will 

20 be continued only if a waiver or appropriate variance 

21 is granted. 

22 ‘‘(d) REQUIREMENT OF SATISFACTORY EVIDENCE.— 

23 ‘‘(1) IN GENERAL.—The Secretary shall, before 

24 granting a waiver or variance under this section, re25 quire each applicant to provide evidence satisfactory 


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1 to the Secretary that the applicant has provided 

2 timely written notice of the filing of an application 

3 for such waiver or variance to each retired partici4 pant entitled to submit a claim for the restoration 

5 of benefits under the applicant’s plan. 

6 ‘‘(2) TIMELINESS.—For purposes of paragraph 

7 (1), a written notice shall be considered timely if it 

8 is provided not later than 60 days prior to the date 

9 the plan sponsor files an application for a waiver or 

10 variance under this section. 

11 ‘‘(3) INFORMATION REQUIRED.—The notice re12 ferred to in paragraph (1) shall include information 

13 with respect to the specific relief that will be sought 

14 by the plan sponsor’s application, the period of time 

15 for which relief is sought, and such other relevant 

16 information as the Secretary may prescribe. 

17 ‘‘(e) PARTICIPATION IN PROCEEDINGS BY RETIRED

18 PLAN PARTICIPANTS.—Each retired participant entitled 

19 to submit a claim for the restoration of benefits within 

20 the meaning of this section shall be provided a reasonable 

21 opportunity to submit comments or otherwise participate 

22 in any proceeding established by the Secretary to deter23 mine whether to grant or deny an application for a waiver 

24 or variance filed by the retired participant’s plan sponsor. 


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1 ‘‘(f) EXCEPTIONS FOR CERTAIN APPLICATIONS.—In 

2 any case in which the plan sponsor of the group health 

3 plan also maintains a pension plan which provides pension 

4 benefits with respect to any retired participant entitled to 

5 submit a claim for the restoration of benefits within the 

6 meaning of this section, the Secretary may not grant any 

7 application for a waiver or variance purporting to satisfy 

8 the requirements of subsection (b) if the requirements of 

9 paragraph (1) or (2) of this subsection are met. 

10 ‘‘(1) FAILURE TO TRANSFER EXCESS PENSION

11 ASSETS.—The requirements of this paragraph are 

12 met if— 

13 ‘‘(A) within the 5-year period preceding 

14 the date of the plan sponsor’s application for 

15 the waiver or variance, the plan sponsor could 

16 have transferred excess assets of such pension 

17 plan to a health benefits account in accordance 

18 with section 420 of the Internal Revenue Code 

19 of 1986 (as in effect on the date of the enact20 ment of the Tax Relief Extension Act of 1999) 

21 but did not do so; and 

22 ‘‘(B) such health benefits account forms a 

23 part of the group health plan with respect to 

24 which the plan sponsor is submitting the appli25 cation. 


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1 ‘‘(2) NO AD HOC COLAS PROVIDED UNDER

2 WELL-FUNDED PENSION PLAN PROVIDING FOR SUCH

3 COLAS.— 

4 ‘‘(A) IN GENERAL.—The requirements of 

5 this paragraph are met if— 

6 ‘‘(i)(I) no employer contributions were 

7 made to such pension plan during any of 

8 the 5 plan years preceding the date of the 

9 application for the waiver or variance; and 

10 ‘‘(II) despite such lack of employer 

11 contributions, the minimum funding stand12 ard under section 302 of this Act and sec13 tion 412 of the Internal Revenue Code of 

14 1986 was satisfied with respect to such 

15 pension plan for each of such 5 plan years 

16 and the average funded ratio of the plan 

17 for such 5 plan years was greater than 120 

18 percent; and 

19 ‘‘(ii)(I) the pension plan provided for 

20 ad hoc cost-of-living adjustments in bene21 fits throughout such 5 plan years; and 

22 ‘‘(II) no such ad hoc cost-of-living ad23 justment in benefits was provided under 

24 such pension plan during such 5 plan 

25 years. 


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1 ‘‘(B) FUNDED RATIO.—For purposes of 

2 subparagraph (A)(i)(II), the funded ratio of a 

3 pension plan for a plan year is the ratio, ex4 pressed as a percentage, of— 

5 ‘‘(i) the assets of the plan as of the 

6 end of such plan year; to 

7 ‘‘(ii) the liabilities of the plan as of 

8 the end of such plan year. 

9 ‘‘(g) RUNNING OF 2-YEAR DEADLINE PERIOD SUS10 PENDED.—The submission of an application for a waiver 

11 or variance pursuant to this section during the 2-year pe12 riod referred to in section 803(f) shall suspend the run13 ning of such period. If determined appropriate by the Sec14 retary, the Secretary may direct that the running of such 

15 period be resumed upon the final conclusion of proceedings 

16 to determine whether an application should be granted or 

17 denied. 

18 ‘‘SEC. 805. ESTABLISHMENT OF EMERGENCY RETIREE 

19 HEALTH LOAN GUARANTEE PROGRAM. 

20 ‘‘(a) DEFINITIONS.—For purposes of this section— 

21 ‘‘(1) BOARD.—The term ‘Board’ means the 

22 Emergency Retiree Health Loan Guarantee Board 

23 established under subsection (c). 


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1 ‘‘(2) PROGRAM.—The term ‘Program’ means 

2 the Emergency Retiree Health Loan Guarantee Pro3 gram established under subsection (b). 

4 ‘‘(3) ELIGIBLE PLAN SPONSOR.—The term ‘eli5 gible plan sponsor’ means any plan sponsor as de6 fined in section 3(16)(B) that maintains a group 

7 health plan subject to the retiree health benefits res8 toration requirements of section 803. 

9 ‘‘(b) ESTABLISHMENT OF EMERGENCY RETIREE

10 HEALTH LOAN GUARANTEE PROGRAM.—There is estab11 lished the Retiree Health Loan Guarantee Program, to be 

12 administered by the Board, the purpose of which is to pro13 vide loan guarantees to eligible plan sponsors in accord14 ance with this section. 

15 ‘‘(c) RETIREE HEALTH LOAN GUARANTEE BOARD

16 MEMBERSHIP.—There is established a Retiree Health 

17 Loan Guarantee Board, which shall be composed of— 

18 ‘‘(1) the Secretary of Labor, who shall serve as 

19 Chairman of the Board; 

20 ‘‘(2) the Secretary of Commerce; 

21 ‘‘(3) the Secretary of the Treasury; 

22 ‘‘(4) the Secretary of Health and Human Serv23 ices; and 

24 ‘‘(5) the Chairman of the Council of Economic 

25 Advisers. 


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1 ‘‘(d) RETIREE HEALTH LOAN GUARANTEE PRO2 GRAM.— 

3 ‘‘(1) AUTHORITY.—The Program may guar4 antee loans provided by private banking and invest5 ment institutions to eligible plan sponsors for pur6 poses of assisting such plan sponsors to meet their 

7 obligations under section 803. Such loan guarantees 

8 shall be provided to the extent provided in advance 

9 in appropriation Acts pursuant to paragraph (4) and 

10 only in accordance with the procedures, rules, and 

11 regulations established by the Board. 

12 ‘‘(2) TOTAL GUARANTEE LIMIT.—The aggre13 gate amount of loans guaranteed and outstanding at 

14 any time under this section may not exceed 

15 $5,000,000,000. 

16 ‘‘(3) INDIVIDUAL GUARANTEE LIMIT.—The ag17 gregate amount of loans guaranteed under this sec18 tion with respect to a single eligible plan sponsor 

19 may not exceed $5,000,000. 

20 ‘‘(4) ADDITIONAL COSTS.—For the additional 

21 cost of loans guaranteed under this subsection, in22 cluding the costs of modifying the loans, as defined 

23 in section 502 of the Congressional Budget Act of 

24 1974 (2 U.S.C. 661a), there is authorized to be apVerDate Mar 15 2010 00:49 Jun 22, 2013 Jkt 029200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\H2425.IH H2425

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1 propriated $200,000,000, to remain available until 

2 expended. 

3 ‘‘(e) REQUIREMENTS FOR LOAN GUARANTEES.—A 

4 loan guarantee may be issued under this section upon ap5 plication to the Board by an eligible plan sponsor pursuant 

6 to an agreement to provide a loan to that eligible plan 

7 sponsor by a private bank or investment company, if the 

8 Board determines that— 

9 ‘‘(1) credit is not otherwise available to that eli10 gible plan sponsor under reasonable terms and con11 ditions sufficient to meet its financing needs with re12 spect to the restoration of retiree health benefits, as 

13 reflected in the financial and business plans of that 

14 eligible plan sponsor; 

15 ‘‘(2) the prospective earning power of that eligi16 ble plan sponsor, together with the character and 

17 value of the security pledged, furnish reasonable as18 surance of repayment of the loan to be guaranteed 

19 in accordance with its terms; 

20 ‘‘(3) the loan to be guaranteed bears interest at 

21 a rate determined by the Board to be reasonable, 

22 taking into account the current average yield on out23 standing obligations of the United States with re24 maining periods of maturity comparable to the ma25 turity of such loan; 


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1 ‘‘(4) the loan to be guaranteed will materially 

2 assist that eligible plan sponsor to discharge its obli3 gation to comply with the restoration of benefits re4 quirements contained in section 803; and 

5 ‘‘(5) the eligible plan sponsor has agreed to an 

6 audit by the Government Accountability Office prior 

7 to the issuance of the loan guarantee and annually 

8 while any such guaranteed loan is outstanding. 

9 ‘‘(f) TERMS AND CONDITIONS OF LOAN GUAR10 ANTEE.— 

11 ‘‘(1) LOAN DURATION.—All loans guaranteed 

12 under this section shall be payable in full not later 

13 than December 31, 2021, and the terms and condi14 tions of each such loan shall provide that the loan 

15 may not be amended or any provision thereof waived 

16 without the consent of the Board. 

17 ‘‘(2) LOAN SECURITY.—Any commitment to 

18 issue a loan guarantee under this section shall con19 tain such affirmative and negative covenants and 

20 other protective provisions that the Board deter21 mines are appropriate. 

22 ‘‘(3) FEES.—An eligible plan sponsor receiving 

23 a guarantee under this section shall pay a fee in an 

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1 cipal balance of the guaranteed loan to the Depart2 ment of the Treasury. 

3 ‘‘(g) REPORTS TO CONGRESS.—The Secretary of 

4 Labor shall submit annually to each House of the Con5 gress a full report of the activities of the Board under 

6 this section during 2014 and 2015, and annually there7 after during such period as any loan guaranteed under 

8 this section is outstanding. Such report shall be submitted 

9 not later than January 31 of each year (beginning in 

10 2014). 

11 ‘‘(h) SALARIES AND ADMINISTRATIVE EXPENSES.— 

12 For necessary expenses to administer the Program, there 

13 is authorized to be appropriated to the Department of 

14 Labor (and to be transferred to the Office of the Assistant 

15 Secretary for Pension and Welfare Benefits Administra16 tion) $10,000,000, to remain available until expended. 

17 ‘‘(i) TERMINATION OF GUARANTEE AUTHORITY.— 

18 The authority of the Board to make commitments to guar19 antee any loan under this section shall terminate on De20 cember 31, 2019. 

21 ‘‘(j) REGULATORY ACTION.—The Board shall issue 

22 such final procedures, rules, and regulations as may be 

23 necessary to carry out this section not later than 90 days 

24 after the date of enactment of the Earned Retiree 

25 Healthcare Benefits Protection Act of 2013. In no event 


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1 shall the Board issue a procedure, rule, or regulation 

2 which authorizes it to approve or deny any application for 

3 a loan guarantee in more than 270 days after receipt of 

4 such application. 

5 ‘‘SEC. 806. EFFECT ON OTHER CLAIMS. 

6 ‘‘(a) OTHER CLAIMS UNAFFECTED.—Nothing in this 

7 part shall be construed to alter, impair, or eliminate any 

8 claim for retiree health benefits based on conduct alleged 

9 to violate the terms of a group health plan, any provision 

10 of this Act (other than this part), or both, regardless of 

11 whether such conduct occurred prior to, on, or after the 

12 date of the enactment of the Earned Retiree Healthcare 

13 Benefits Protection Act of 2013. 

14 ‘‘(b) OTHER CAUSES OF ACTION NOT AUTHOR15 IZED.—Nothing contained in this part shall be construed 

16 to authorize any action for recovery of retiree health bene17 fits unless the conduct giving rise to the claim for recovery 

18 is alleged to violate the provisions of this part. 

19 ‘‘SEC. 807. REGULATIONS. 

20 ‘‘The Secretary may promulgate such regulations as 

21 may be necessary to carry out the provisions of this part. 

22 The Secretary may promulgate any interim final rules as 

23 the Secretary deems are appropriate to carry out this 

24 part.’’. 


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1 (b) CIVIL PENALTY.—Section 502(c) of the Em2 ployee Retirement Income Security Act of 1974 (29 

3 U.S.C. 1132(c)) is amended— 

4 (1) by redesignating the second paragraph (10) 

5 (relating to consultation between the Secretary of 

6 Labor and the Secretary of Health and Human 

7 Services) as paragraph (12); and 

8 (2) by inserting after the first paragraph (10) 

9 the following new paragraph: 

10 ‘‘(11) The Secretary may assess any person a civil 

11 penalty of not more than $20,000 with respect to each 

12 failure by such person to meet the requirements of section 

13 801, 802, or 803 with respect to each participant or bene14 ficiary aggrieved by such failure.’’. 

15 (c) CONFORMING AMENDMENT.—The table of con16 tents in section 1 of such Act is amended by inserting 

17 after the item relating to section 734 the following new 

18 items: 

‘‘PART 8—EMERGENCY RETIREE HEALTH BENEFIT PROTECTIONS

‘‘Sec. 801. Prohibition against post-retirement reductions of retiree health benefits by group health plans. 

‘‘Sec. 802. Adoption by group health plans of provision barring post-retirement 

reductions in retiree health benefits. 

‘‘Sec. 803. Restoration by group health plans of benefits reduced after retirement. 

‘‘Sec. 804. Exemption from restoration of benefits requirements. 

‘‘Sec. 805. Establishment of emergency retiree health loan guarantee program. 

‘‘Sec. 806. Effect on other claims. 

‘‘Sec. 807. Regulations.’’. 


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1 SEC. 4. EFFECTIVE DATE. 

2 The amendments made by this Act shall take effect 

3 on the date of the enactment of this Act, except that sec4 tion 802 of the Employee Retirement Income Security Act 

5 of 1974 (as added by section 3 of this Act) shall apply 

6 with respect to plan years beginning after 180 days after 

7 the date of the enactment of this Act. Compliance with 

8 the requirements of part 8 of subtitle B of title I of the 

9 Employee Retirement Income Security Act of 1974 with 

10 respect to a group health plan shall not be treated as a 

11 failure to comply with the terms of such plan. 

Æ 


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