I

103D CONGRESS

1ST SESSION H. R. 3215

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

to clarify remedies against unauthorized termination or reduction of

benefits under group health plans provided upon retirement.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 5, 1993

Mr. MURPHY introduced the following bill; which was referred to the

Committee on Education and Labor

A BILL

To amend title I of the Employee Retirement Income Security Act of 1974 to clarify remedies against unauthorized

termination or reduction of benefits under group health

plans provided upon retirement.

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 ‘‘Retiree Health Bene5 fits Protection Act of 1993’’.
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1 SEC. 2. TERMINATION OR REDUCTION IN BENEFITS PRO2 VIDED UPON RETIREMENT.

3 (a) IN GENERAL.—Part 6 of subtitle B of title I of

4 the Employee Retirement Income Security Act of 1974

5 (29 U.S.C. 1161 et seq.) is amended by adding at the end

6 the following new section:

7 ‘‘SEC. 610. TERMINATION OR REDUCTION IN BENEFITS

8 PROVIDED UPON RETIREMENT.

9 ‘‘(a) GENERAL RULE.—Subject to subsection (b),

10 benefits provided under a group health plan with respect

11 to a participant upon the participant’s retirement based

12 on age, service, disability, or any combination thereof may

13 not thereafter be terminated or reduced.

14 ‘‘(b) EXCEPTION FOR LIMITATIONS PROVIDED BY

15 PLAN.—Subsection (a) shall not apply with respect to any

16 termination or reduction in benefits to the extent that—

17 ‘‘(1) the terms of the plan, as in effect on the

18 date of such retirement, provide for such termi19 nation or reduction, and

20 ‘‘(2) written notice of such terms providing for

21 such termination or reduction has been provided to

22 the participant on or before such date.’’.

23 (b) CLERICAL AMENDMENT.—The table of contents

24 in section 1 of such Act is amended by inserting after the

25 item relating to section 609 the following new item:

‘‘Sec. 610. Termination or reduction in benefits provided upon retirement.’’.
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1 SEC. 3. RULES GOVERNING LITIGATION INVOLVING THE

2 TERMINATION OR REDUCTION OF BENEFITS

3 PROVIDED UPON RETIREMENT.

4 (a) CAUSE OF ACTION.—Section 502(a) of the Em5 ployee Retirement Income Security Act of 1974 (29

6 U.S.C. 1132(a)) is amended—

7 (1) in paragraph (5), by striking ‘‘or’’ at the

8 end;

9 (2) in paragraph (6), by striking the period and

10 inserting ‘‘; or’’; and

11 (3) by adding at the end the following new

12 paragraph:

13 ‘‘(7) by a participant, beneficiary, or fiduciary,

14 or by an employee organization on behalf of one or

15 more participants or beneficiaries, to enjoin any act

16 or practice which violates section 610.’’.

17 (b) RELATED PROVISIONS.—Section 502 of such Act

18 is further amended by adding at the end the following new

19 subsection:

20 ‘‘(m)(1) In any action under subsection (a)(7), if the

21 plaintiff has received notice of a termination or reduction

22 in benefits described in section 610(a) and has reason to

23 believe that such termination or reduction is not provided

24 for in the terms of the plan, the court shall, upon proper

25 showing—
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1 ‘‘(A) grant a temporary injunction or restrain2 ing order against such termination or reduction

3 without bond, pending a final decision, and

4 ‘‘(B) grant a permanent injunction against such

5 termination or reduction or other appropriate equi6 table relief unless a defendant in such action estab7 lishes by a preponderance of the evidence that the

8 requirements of section 610(b) are met with respect

9 to such termination or reduction.

10 ‘‘(2) An employee organization may intervene on be11 half of a participant or beneficiary in any action brought

12 under subsection (a)(7) by such participant or bene13 ficiary.’’.

14 SEC. 4. EFFECTIVE DATE.

15 The amendments made by this Act shall apply to ac16 tions relating to terminations or reductions in benefits

17 which are pending or commenced on or after the date of

18 the enactment of this Act.

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