To amend the wage priority provision and to amend the payment of insurance benefits to retirees.

SA 24. Mr. ROCKEFELLER (for himself and Mr. Leahy) submitted an
amendment intended to be proposed by him to the bill S. 256, to amend
title 11 of the United States Code, and for other purposes; which was
ordered to lie on the table; as follows:

Beginning on page 498, strike line 20 and all that follows
through page 499, line 2, and insert the following:

SEC. 1401. EMPLOYEE WAGE AND BENEFIT PRIORITIES.

Section 507(a) of title 11, United States Code, as amended
by section 212, is amended--
(1) in paragraph (4)--
(A) by striking ``within 90 days''; and
(B) by striking ``but only to the extent'' and all that
follows through ``each individual or corporation'' and
inserting ``but only to the extent of $15,000 for each
individual or corporation''; and
(2) in paragraph (5)(B)(i), by striking ``multiplied by''
and all that follows through ``;

[[Page S1881]]

less'' and inserting ``multiplied by $15,000; less''.

SEC. 1401A. PAYMENT OF INSURANCE BENEFITS OF RETIREES.

(a) In General.--Section 1114(j) of title 11, United States
Code, is amended to read as follows:
``(j)(1) No claim for retiree benefits shall be limited by
section 502(b)(7).
``(2)(A) Each retiree whose benefits are modified pursuant
to subsection (e)(1) or (g) shall have a claim in an amount
equal to the value of the benefits lost as a result of such
modification. Such claim shall be reduced by the amount paid
by the debtor under subparagraph (B).
``(B)(i) In accordance with section 1129(a)(13)(B), the
debtor shall pay the retiree with a claim under subparagraph
(A) an amount equal to the cost of 18 months of premiums on
behalf of the retiree and the dependents of the retiree under
section 602(3) of the Employee Retirement Income Security Act
of 1974 (29 U.S.C. 1162(3)), which amount shall not exceed
the amount of the claim under subparagraph (A).
``(ii) If a retiree under clause (i) is not eligible for
continuation coverage (as defined in section 602 of the
Employee Retirement Income Security Act of 1974), the
Secretary of Labor shall determine the amount to be paid by
the debtor to the retiree based on the 18-month cost of a
comparable health insurance plan.
``(C) Any amount of the claim under subparagraph (A) that
is not paid under subparagraph (B) shall be a general
unsecured claim.''.
(b) Confirmation of Plan.--Section 1129(a)(13) of title 11,
United States Code, is amended to read as follows:
``(13) The plan provides--
``(A) for the continuation after its effective date of the
payment of all retiree benefits (as defined in section 1114),
at the level established pursuant to subsection (e)(1) or (g)
of section 1114, at any time before the confirmation of the
plan, for the duration of the period the debtor has obligated
itself to provide such benefits; and
``(B) that the holder of a claim under section
1114(j)(2)(A) shall receive from the debtor, on the effective
date of the plan, cash equal to the amount calculated under
section 1114(j)(2)(B).''.
(c) Rulemaking.--The Secretary of Labor shall promulgate
rules and regulations to carry out the amendments made by
this section.
______