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Pension Protection in Bankruptcy: Enhanced Security for Workers

This act aims to better protect employee pension benefits in company bankruptcies. It introduces changes that increase the likelihood of recovering pension funds and make it harder for companies to avoid their obligations to employees, even in difficult financial situations. These changes are designed to provide greater financial security for those retired or nearing retirement.
Key points
Companies must continue to make pension contributions even if they declare bankruptcy, unless the government grants a waiver.
Unpaid pension contributions and withdrawal liability payments will receive higher priority in bankruptcy proceedings, increasing the chances of recovery.
The amount of employee wages protected in bankruptcy has been increased from $10,000 to $20,000.
Courts will consider job retention and pension benefits when approving the sale of company assets in bankruptcy.
The look-back period for challenging fraudulent transfers of company assets before bankruptcy has been extended from 2 to 6 years.
Restrictions on payments to executives and consultants during bankruptcy to protect company funds.
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Expired
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Additional Information
Print number: 117_S_5097
Sponsor: Sen. Manchin, Joe, III [D-WV]
Process start date: 2022-11-15
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

SLAP Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_5097.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2022-11-15.

What are the main provisions?

Key points include:

  • Companies must continue to make pension contributions even if they declare bankruptcy, unless the government grants a waiver.
  • Unpaid pension contributions and withdrawal liability payments will receive higher priority in bankruptcy proceedings, increasing the chances of recovery.
  • The amount of employee wages protected in bankruptcy has been increased from $10,000 to $20,000.
  • Courts will consider job retention and pension benefits when approving the sale of company assets in bankruptcy.
  • The look-back period for challenging fraudulent transfers of company assets before bankruptcy has been extended from 2 to 6 years.
  • Restrictions on payments to executives and consultants during bankruptcy to protect company funds.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Manchin, Joe, III [D-WV].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

CATEGORIES

Labor Courts and Law Economy