S. 2267Senate115th Congress (2017-2019)In Committee

Pension Priority Act

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Updated April 15, 2026 at 7:43 PM UTC

The Pension Priority Act changes the bankruptcy code so that certain pension‑related claims are given a higher priority when a debtor files for Chapter 11, 12, or 13. It creates a new priority class for claims tied to the termination of employee pension plans, withdrawal liabilities, awards, delinquent contributions, other obligations to the plan, and obligations to the Pension Benefit Guaranty Corporation. The change affects employees, retirees, pension plan administrators, the PBGC, and anyone involved in a bankruptcy case.

Key Provisions

Adds a new priority class (the eighth priority) for allowed unsecured claims that arise from the termination of employee pension plans and related obligations, placing them ahead of other unsecured claims.
Specifies the types of pension‑related claims that qualify, including withdrawal liability, certain ERISA awards, delinquent contributions, other plan obligations, and obligations to the PBGC.
Renumbers the existing priority classes to accommodate the new class and updates cross‑references throughout the bankruptcy code.
Makes minor technical edits to the plan‑confirmation section of the code, removing some subparagraphs and adjusting punctuation.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on the Judiciary.

Judiciary Committee

December 21, 2017

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SenateIntro Referral

Introduced in Senate

December 21, 2017

SenateIntro Referral

Read twice and referred to the Committee on the Judiciary.

Judiciary Committee

December 21, 2017

Bill Text

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Introduced in SenateIssued December 21, 2017

115th CONGRESS

1st Session

S. 2267

IN THE SENATE OF THE UNITED STATES

December 21, 2017

Mr. Franken introduced the following bill; which was read twice and referred to the Committee on the Judiciary

A BILL

To amend title 11, United States Code, to prioritize certain pension claims in bankruptcy, and for other purposes.

Short title

This Act may be cited as the Pension Priority Act.

Priorities

(a)

In general

Section 507(a) of title 11, United States Code, is amended—

(1)

by redesignating paragraphs (8) through (10) as paragraphs (9) through (11), respectively; and

(2)

by inserting after paragraph (7) the following:

(8)

Eighth, allowed unsecured claims (not otherwise subject to higher priority)—

(A)

resulting from the termination of an employee pension benefit plan covered under section 4 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1003);

(B)

for withdrawal liability determined under part 1 of subtitle E of title IV of such Act (29 U.S.C. 1381 et seq.);

(C)

for awards pursuant to paragraph (2) of subsection (g) of section 502 of such Act (29 U.S.C. 1132(g)(2));

(D)

for delinquent contributions described in section 515 of such Act (29 U.S.C. 1145) and obligations treated as delinquent obligations under such Act;

(E)

for other obligations owed to an employee pension benefit plan (if the plan is covered under section 4 of such Act (29 U.S.C. 1003)); or

(F)

for other obligations owed to the Pension Benefit Guaranty Corporation.

(b)

Technical and conforming amendments

Title 11, United States Code, is amended—

(1)

in section 502(i), by striking 507(a)(8) and inserting 507(a)(9);

(2)

in section 503(b)(1)(B)(i), by striking 507(a)(8) and inserting 507(a)(9);

(3)

in section 523(a)(1)(A), by striking 507(a)(8) and inserting 507(a)(9);

(4)

in section 726(b), by striking (9), or (10) and inserting (9), (10), or (11);

(5)

in section 1123(a)(1), by striking 507(a)(8) and inserting 507(a)(9); and

(6)

in section 1328(a)(2), by striking 507(a)(8)(C) and inserting 507(a)(9)(C).

Modification of plan confirmation

Section 1129(a)(9) of title 11, United States Code, is amended—

(1)

in subparagraph (A), by inserting and at the end;

(2)

in subparagraph (B)(ii), by striking the semicolon at the end and inserting a period; and

(3)

by striking subparagraphs (C) and (D).