A bill to amend title 11 of the United States Code to give priority to certain unsecured claims of retired former employees of the debtor.

Amends Federal bankruptcy provisions to give fifth priority to unsecured claims of retired former employees for up to specified amounts of payments to any employee health insurance plan, employee pension plan, or employee life insurance plan arising from services rendered before the earlier of the date the bankruptcy petition is filed or the date of cessation of the debtor's business.

Provides that an entity that is subrogated to the rights of a holder of an unsecured claim of a governmental unit is not subrogated to the priority right of the holder of such claim.

Gives second priority in the distribution of property in which the estate has an interest and which is subject to a tax lien that is not avoidable to such unsecured claims of retired former employees and to unsecured claims of individuals arising from security deposits. Prohibits a court from confirming a reorganization plan which does not provide for cash or deferred cash payments of the allowed amounts of such claims.