(29 U.S.C. 1131 et seq.) is amended by adding at the end
the following new section:
‘‘SEC. 516. RULES GOVERNING LITIGATION INVOLVING RE-
TIREE HEALTH BENEFITS.
‘‘(a) MAINTENANCE OF BENEFITS.—
‘‘(1) IN GENERAL.—If—
‘‘(A) retiree health benefits or plan or plan
sponsor payments in connection with such bene-
fits are to be or have been terminated or re-
duced under an employee welfare benefit plan;
and
‘‘(B) an action is brought by any partici-
pant or beneficiary to enjoin or otherwise mod-
ify such termination or reduction,
the court without requirement of any additional
showing shall promptly order the plan and plan
sponsor to maintain the retiree health benefits and
payments at the level in effect immediately before
the termination or reduction while the action is
pending in any court. No security or other undertak-
ing shall be required of any participant or bene-
ficiary as a condition for issuance of such relief. An
order requiring such maintenance of benefits may be
refused or dissolved only upon determination by the
court, on the basis of clear and convincing evidence,
that the action is clearly without merit.
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not
apply to any action if—
‘‘(A) the termination or reduction of re-
tiree health benefits is substantially similar to
a termination or reduction in health benefits (if
any) provided to current employees which oc-
curs either before, or at or about the same time
as, the termination or reduction of retiree
health benefits, or
‘‘(B) the changes in benefits are in connec-
tion with the addition, expansion, or clarifica-
tion of the delivery system, including utilization
review requirements and restrictions, require-
ments that goods or services be obtained
through managed care entities or specified pro-
viders or categories of providers, or other spe-
cial major case management restrictions.
‘‘(3) MODIFICATIONS.—Nothing in this section
shall preclude a court from modifying the obligation
of a plan or plan sponsor to the extent retiree bene-
fits are otherwise being paid by the plan sponsor.
‘‘(b) BURDEN OF PROOF.—In addition to the relief
authorized in subsection (a) or otherwise available, if, in
any action to which subsection (a)(1) applies, the terms
of the employee welfare benefit plan summary plan de-
scription or, in the absence of such description, other ma-
terials distributed to employees at the time of a partici-
pant’s retirement or disability, are silent or are ambigu-
ous, either on their face or after consideration of extrinsic
evidence, as to whether retiree health benefits and pay-
ments may be terminated or reduced for a participant and
his or her beneficiaries after the participant’s retirement
or disability, then the benefits and payments shall not be
terminated or reduced for the participant and his or her
beneficiaries unless the plan or plan sponsor establishes
by a preponderance of the evidence that the summary plan
description or other materials about retiree benefits—
‘‘(1) were distributed to the participant at least
90 days in advance of retirement or disability;
‘‘(2) did not promise retiree health benefits for
the lifetime of the participant and his or her spouse;
and
‘‘(3) clearly and specifically disclosed that the
plan allowed such termination or reduction as to the
participant after the time of his or her retirement or
disability.