payment of allowed unsecured claims for retiree
health benefits, but only to the extent of the ag-
gregate amount that represents $10,000 multi-
plied by the number of former employees with
respect to whom a retiree health benefit ac-
crues;’’.
(2) Section 724(b)(2) of title 11, United States Code,
is amended by inserting ‘‘, and to holders of claims for
retiree health benefits payable under section 726(a)(1)(B)
of this title,’’ after ‘‘this title’’.
(c) 
PRIORITY
UNDER
CHAPTER
11.—Section
1129(a) of title 11, United States Code, is amended—
(1) in pargraph (9)—
(A) in subparagraph (B)—
(i) by inserting ‘‘subject to subpara-
graph (D)’’ after ‘‘receive’’, and
(ii) by striking ‘‘and’’ at the end,
(B) in subparagraph (C) by striking the
period at the end and inserting ‘‘; and’’, and
(C) by adding at the end the following:
‘‘(D) if liquidation is proposed in the plan,
with respect to a class of claims for retiree
health benefits, such class will receive imme-
diately after payment of claims of the kinds
specified in paragraphs (1), (2), (3), and (4) of
section 507(a) of this title—
‘‘(i) if such class has accepted the
plan, deferred cash payments of a value, as
of the effective date of the plan; or
‘‘(ii) if such class has not accepted the
plan, cash on the effective date of the plan;
equal to the allowed aggregate amount of such
claims, but only to the extent of the aggregate
amount that represents $10,000 multiplied by
the number of former employees with respect to
whom a retiree health benefit accrues.’’, and
(2) by amending paragraph (13) to read as fol-
lows:
‘‘(13) The plan provides—
‘‘(A) except as provided in subparagraph
(B), for the continuation after its effective date
of payment of all retiree benefits (as defined in
section 1114 of this title) at the level estab-
lished pursuant to subsection (e)(1)(B) or (g)
of section 1114 of this title, at any time prior
to confirmation of the plan, for the duration of
the period the debtor has obligated itself to pro-
vide such benefits; and
‘‘(B) if the plan provides for liquidation,
for the payment of allowed unsecured claims for
retiree health benefits, but only to the extent of
the aggregate amount that represents $10,000
multiplied by the number of former employees
with respect to whom a retiree health benefit
accrues.’’.
SEC. 2. RULE OF CONSTRUCTION.
The amendments made by this Act shall not be con-
strued to limit any priority to which claims for retiree
health benefits are entitled under the provisions of title
11 of the United States Code that are not amended by
this Act.
SEC. 3. EFFECTIVE DATES; APPLICATION OF AMENDMENTS.
(a) EFFECTIVE DATE.—Except as provided in sub-
section (b), this Act and the amendments made by section
1 shall take effect on the date of the enactment of this
Act.
(b) APPLICATION OF AMENDMENTS.—(1) Except as
provided in paragraph (2), the amendments made by sec-
tion 1 shall apply only with respect to cases commenced
under title 11, United States Code, after the date of the
enactment of this Act.
(2) The amendments made by section 1 shall apply
with respect to—
(A) cases commenced under chapter 11 of title
11, United States Code on or after March 1, 1989;
and
(B) cases converted from chapter 11 of title 11,
United States Code, to chapter 7 of such Code on
or after September 1, 1991.
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