Retiree Benefits Bankruptcy Protection Act of 1988

Retiree Benefit Protection Act of 1987 - Amends Federal bankruptcy provisions to provide a definition of retiree benefits covered by provisions relating to reorganization plans. Defines "retiree benefits" as benefits provided to retirees or their dependents (by insurance or otherwise) for medical, surgical, or hospital care; benefits provided in the event of sickness, accident, or disability; or a benefit (having no cash-value during life and not to exceed $50,000) payable in the event of death.

Authorizes the allowance of administrative expenses for committees serving as the authorized representatives of retirees in a reorganization case.

Amends provisions relating to the priority of expenses and claims in a bankruptcy proceeding that provide that retiree benefits will be given fifth priority to the extent that the aggregate amount represents $1,500 for each former employee entitled to such benefits.

Makes technical and conforming amendments regarding collective bargaining agreements.

Requires a trustee in a reorganization case to pay any retiree benefit to the extent such retiree benefit may be paid without impairing any secured claim. Sets forth the procedures a trustee must follow and the standards that must be satisfied in order for the trustee to modify or terminate retiree benefits. Provides that the bankruptcy court must approve any such modification or termination of retiree benefits.

Permits the placement of retiree benefit claims in one or more separate classes in the plan of reorganization.

Provides that a reorganization plan must provide for the aggregate treatment of retiree benefit claims rather than specify treatment on an individual basis.

Specifies that a reorganization plan shall be approved by a class of claims for retiree benefits if approved by at least two-thirds of the number of the allowed claims of such class. Provides that in cases where claims for retiree benefits are not placed in a separate class, then for approval purposes the amount of each allowed claim for a retiree benefit in a class shall be considered to be a pro rata share of the aggregate amount of all allowed claims for retiree benefits in such class.

Provides that any payments made for retiree benefits prior to confirmation of a reorganization plan shall be credited against the amount to be provided for retiree benefits under the plan.

Provides that in judicial districts where a U.S. Trustee has not yet been appointed, the bankruptcy court shall perform the functions of a trustee.