-CITE-
26 USC CHAPTER 99 - COAL INDUSTRY HEALTH BENEFITS 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle J - Coal Industry Health Benefits
CHAPTER 99 - COAL INDUSTRY HEALTH BENEFITS
-HEAD-
CHAPTER 99 - COAL INDUSTRY HEALTH BENEFITS
-MISC1-
Subchapter Sec.(!1)
A. Definitions of general applicability 9701
B. Combined benefit fund 9702
C. Health benefits of certain miners 9711
D. Other provisions 9721
-End-
-CITE-
26 USC Subchapter A - Definitions of General
Applicability 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle J - Coal Industry Health Benefits
CHAPTER 99 - COAL INDUSTRY HEALTH BENEFITS
Subchapter A - Definitions of General Applicability
-HEAD-
SUBCHAPTER A - DEFINITIONS OF GENERAL APPLICABILITY
-MISC1-
Sec.
9701. Definitions of general applicability.
-End-
-CITE-
26 USC Sec. 9701 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle J - Coal Industry Health Benefits
CHAPTER 99 - COAL INDUSTRY HEALTH BENEFITS
Subchapter A - Definitions of General Applicability
-HEAD-
Sec. 9701. Definitions of general applicability
-STATUTE-
(a) Plans and funds
For purposes of this chapter -
(1) UMWA Benefit Plan
(A) In general
The term "UMWA Benefit Plan" means a plan -
(i) which is described in section 404(c), or a continuation
thereof; and
(ii) which provides health benefits to retirees and
beneficiaries of the industry which maintained the 1950 UMWA
Pension Plan.
(B) 1950 UMWA Benefit Plan
The term "1950 UMWA Benefit Plan" means a UMWA Benefit Plan,
participation in which is substantially limited to individuals
who retired before 1976.
(C) 1974 UMWA Benefit Plan
The term "1974 UMWA Benefit Plan" means a UMWA Benefit Plan,
participation in which is substantially limited to individuals
who retired on or after January 1, 1976.
(2) 1950 UMWA Pension Plan
The term "1950 UMWA Pension Plan" means a pension plan
described in section 404(c) (or a continuation thereof),
participation in which is substantially limited to individuals
who retired before 1976.
(3) 1974 UMWA Pension Plan
The term "1974 UMWA Pension Plan" means a pension plan
described in section 404(c) (or a continuation thereof),
participation in which is substantially limited to individuals
who retired in 1976 and thereafter.
(4) 1992 UMWA Benefit Plan
The term "1992 UMWA Benefit Plan" means the plan referred to in
section 9713A.(!1)
(5) Combined Fund
The term "Combined Fund" means the United Mine Workers of
America Combined Benefit Fund established under section 9702.
(b) Agreements
For purposes of this section -
(1) Coal wage agreement
The term "coal wage agreement" means -
(A) the National Bituminous Coal Wage Agreement, or
(B) any other agreement entered into between an employer in
the coal industry and the United Mine Workers of America that
required or requires one or both of the following:
(i) the provision of health benefits to retirees of such
employer, eligibility for which is based on years of service
credited under a plan established by the settlors and
described in section 404(c) or a continuation of such plan;
or
(ii) contributions to the 1950 UMWA Benefit Plan or the
1974 UMWA Benefit Plan, or any predecessor thereof.
(2) Settlors
The term "settlors" means the United Mine Workers of America
and the Bituminous Coal Operators' Association, Inc. (referred to
in this chapter as the "BCOA").
(3) National Bituminous Coal Wage Agreement
The term "National Bituminous Coal Wage Agreement" means a
collective bargaining agreement negotiated by the BCOA and the
United Mine Workers of America.
(c) Terms relating to operators
For purposes of this section -
(1) Signatory operator
The term "signatory operator" means a person which is or was a
signatory to a coal wage agreement.
(2) Related persons
(A) In general
A person shall be considered to be a related person to a
signatory operator if that person is -
(i) a member of the controlled group of corporations
(within the meaning of section 52(a)) which includes such
signatory operator;
(ii) a trade or business which is under common control (as
determined under section 52(b)) with such signatory operator;
or
(iii) any other person who is identified as having a
partnership interest or joint venture with a signatory
operator in a business within the coal industry, but only if
such business employed eligible beneficiaries, except that
this clause shall not apply to a person whose only interest
is as a limited partner.
A related person shall also include a successor in interest of
any person described in clause (i), (ii), or (iii).
(B) Time for determination
The relationships described in clauses (i), (ii), and (iii)
of subparagraph (A) shall be determined as of July 20, 1992,
except that if, on July 20, 1992, a signatory operator is no
longer in business, the relationships shall be determined as of
the time immediately before such operator ceased to be in
business.
(3) 1988 agreement operator
The term "1988 agreement operator" means -
(A) a signatory operator which was a signatory to the 1988
National Bituminous Coal Wage Agreement,
(B) an employer in the coal industry which was a signatory to
an agreement containing pension and health care contribution
and benefit provisions which are the same as those contained in
the 1988 National Bituminous Coal Wage Agreement, or
(C) an employer from which contributions were actually
received after 1987 and before July 20, 1992, by the 1950 UMWA
Benefit Plan or the 1974 UMWA Benefit Plan in connection with
employment in the coal industry during the period covered by
the 1988 National Bituminous Coal Wage Agreement.
(4) Last signatory operator
The term "last signatory operator" means, with respect to a
coal industry retiree, a signatory operator which was the most
recent coal industry employer of such retiree.
(5) Assigned operator
The term "assigned operator" means, with respect to an eligible
beneficiary defined in section 9703(f), the signatory operator to
which liability under subchapter B with respect to the
beneficiary is assigned under section 9706.
(6) Operators of dependent beneficiaries
For purposes of this chapter, the signatory operator, last
signatory operator, or assigned operator of any eligible
beneficiary under this chapter who is a coal industry retiree
shall be considered to be the signatory operator, last signatory
operator, or assigned operator with respect to any other
individual who is an eligible beneficiary under this chapter by
reason of a relationship to the retiree.
(7) Business
For purposes of this chapter, a person shall be considered to
be in business if such person conducts or derives revenue from
any business activity, whether or not in the coal industry.
(d) Enactment date
For purposes of this chapter, the term "enactment date" means the
date of the enactment of this chapter.
-SOURCE-
(Added Pub. L. 102-486, title XIX, Sec. 19143(a), Oct. 24, 1992,
106 Stat. 3037.)
-REFTEXT-
REFERENCES IN TEXT
Section 9713A, referred to in subsec. (a)(4), probably should be
a reference to section 9712 which provided for the establishment of
the United Mine Workers of America 1992 Benefit Plan, referred to
in that section as the "1992 UMWA Benefit Plan". No section 9713A
of this title has been enacted.
The date of the enactment of this chapter, referred to in subsec.
(d), is the date of the enactment of Pub. L. 102-486, which was
approved Oct. 24, 1992.
-MISC1-
FINDINGS AND DECLARATION OF POLICY
Section 19142 of Pub. L. 102-486 provided that:
"(a) Findings. - The Congress finds that -
"(1) the production, transportation, and use of coal
substantially affects interstate and foreign commerce and the
national public interest; and
"(2) in order to secure the stability of interstate commerce,
it is necessary to modify the current private health care benefit
plan structure for retirees in the coal industry to identify
persons most responsible for plan liabilities in order to
stabilize plan funding and allow for the provision of health care
benefits to such retirees.
"(b) Statement of Policy. - It is the policy of this subtitle
[subtitle C (Secs. 19141-19143) of title XIX of Pub. L. 102-486,
enacting this subtitle, amending sections 1231 and 1232 of Title
30, Mineral Lands and Mining, and enacting provisions set out as a
note under section 1 of this title] -
"(1) to remedy problems with the provision and funding of
health care benefits with respect to the beneficiaries of
multiemployer benefit plans that provide health care benefits to
retirees in the coal industry;
"(2) to allow for sufficient operating assets for such plans;
and
"(3) to provide for the continuation of a privately financed
self-sufficient program for the delivery of health care benefits
to the beneficiaries of such plans."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 9704 of this title.
-FOOTNOTE-
(!1) See References in Text note below.
-End-
-CITE-
26 USC Subchapter B - Combined Benefit Fund 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle J - Coal Industry Health Benefits
CHAPTER 99 - COAL INDUSTRY HEALTH BENEFITS
Subchapter B - Combined Benefit Fund
-HEAD-
SUBCHAPTER B - COMBINED BENEFIT FUND
-MISC1-
Part
I. Establishment and Benefits.
II. Financing.
III. Enforcement.
IV. Other Provisions.
-SECREF-
SUBCHAPTER REFERRED TO IN OTHER SECTIONS
This subchapter is referred to in section 9701 of this title.
-End-
-CITE-
26 USC PART I - ESTABLISHMENT AND BENEFITS 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle J - Coal Industry Health Benefits
CHAPTER 99 - COAL INDUSTRY HEALTH BENEFITS
Subchapter B - Combined Benefit Fund
PART I - ESTABLISHMENT AND BENEFITS
-HEAD-
PART I - ESTABLISHMENT AND BENEFITS
-MISC1-
Sec.
9702. Establishment of the United Mine Workers of America
Combined Benefit Fund.
9703. Plan benefits.
-End-
-CITE-
26 USC Sec. 9702 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle J - Coal Industry Health Benefits
CHAPTER 99 - COAL INDUSTRY HEALTH BENEFITS
Subchapter B - Combined Benefit Fund
PART I - ESTABLISHMENT AND BENEFITS
-HEAD-
Sec. 9702. Establishment of the United Mine Workers of America
Combined Benefit Fund
-STATUTE-
(a) Establishment
(1) In general
As soon as practicable (but not later than 60 days) after the
enactment date, the persons described in subsection (b) shall
designate the individuals to serve as trustees. Such trustees
shall create a new private plan to be known as the United Mine
Workers of America Combined Benefit Fund.
(2) Merger of retiree benefit plans
As of February 1, 1993, the settlors of the 1950 UMWA Benefit
Plan and the 1974 UMWA Benefit Plan shall cause such plans to be
merged into the Combined Fund, and such merger shall not be
treated as an employer withdrawal for purposes of any 1988 coal
wage agreement.
(3) Treatment of plan
The Combined Fund shall be -
(A) a plan described in section 302(c)(5) of the Labor
Management Relations Act, 1947 (29 U.S.C. 186(c)(5)),
(B) an employee welfare benefit plan within the meaning of
section 3(1) of the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1002(1)), and
(C) a multiemployer plan within the meaning of section 3(37)
of such Act (29 U.S.C. 1002(37)).
(4) Tax treatment
For purposes of this title, the Combined Fund and any related
trust shall be treated as an organization exempt from tax under
section 501(a).
(b) Board of trustees
(1) In general
For purposes of subsection (a), the board of trustees for the
Combined Fund shall be appointed as follows:
(A) one individual who represents employers in the coal
mining industry shall be designated by the BCOA;
(B) one individual shall be designated by the three
employers, other than 1988 agreement operators, who have been
assigned the greatest number of eligible beneficiaries under
section 9706;
(C) two individuals designated by the United Mine Workers of
America; and
(D) three persons selected by the persons appointed under
subparagraphs (A), (B), and (C).
(2) Successor trustees
Any successor trustee shall be appointed in the same manner as
the trustee being succeeded. The plan establishing the Combined
Fund shall provide for the removal of trustees.
(3) Special rules
(A) BCOA
If the BCOA ceases to exist, any trustee or successor under
paragraph (1)(A) shall be designated by the 3 employers who
were members of the BCOA on the enactment date and who have
been assigned the greatest number of eligible beneficiaries
under section 9706.
(B) Former signatories
The initial trustee under paragraph (1)(B) shall be
designated by the 3 employers, other than 1988 agreement
operators, which the records of the 1950 UMWA Benefit Plan and
1974 UMWA Benefit Plan indicate have the greatest number of
eligible beneficiaries as of the enactment date, and such
trustee and any successor shall serve until November 1, 1993.
(c) Plan year
The first plan year of the Combined Fund shall begin February 1,
1993, and end September 30, 1993. Each succeeding plan year shall
begin on October 1 of each calendar year.
-SOURCE-
(Added Pub. L. 102-486, title XIX, Sec. 19143(a), Oct. 24, 1992,
106 Stat. 3040.)
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 9701 of this title; title
30 section 1232.
-End-
-CITE-
26 USC Sec. 9703 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle J - Coal Industry Health Benefits
CHAPTER 99 - COAL INDUSTRY HEALTH BENEFITS
Subchapter B - Combined Benefit Fund
PART I - ESTABLISHMENT AND BENEFITS
-HEAD-
Sec. 9703. Plan benefits
-STATUTE-
(a) In general
Each eligible beneficiary of the Combined Fund shall receive -
(1) health benefits described in subsection (b), and
(2) in the case of an eligible beneficiary described in
subsection (f)(1), death benefits coverage described in
subsection (c).
(b) Health benefits
(1) In general
The trustees of the Combined Fund shall provide health care
benefits to each eligible beneficiary by enrolling the
beneficiary in a health care services plan which undertakes to
provide such benefits on a prepaid risk basis. The trustees shall
utilize all available plan resources to ensure that, consistent
with paragraph (2), coverage under the managed care system shall
to the maximum extent feasible be substantially the same as (and
subject to the same limitations of) coverage provided under the
1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan as of
January 1, 1992.
(2) Plan payment rates
(A) In general
The trustees of the Combined Fund shall negotiate payment
rates with the health care services plans described in
paragraph (1) for each plan year which are in amounts which -
(i) vary as necessary to ensure that beneficiaries in
different geographic areas have access to a uniform level of
health benefits; and
(ii) result in aggregate payments for such plan year from
the Combined Fund which do not exceed the total premium
payments required to be paid to the Combined Fund under
section 9704(a) for the plan year, adjusted as provided in
subparagraphs (B) and (C).
(B) Reductions
The amount determined under subparagraph (A)(ii) for any plan
year shall be reduced -
(i) by the aggregate death benefit premiums determined
under section 9704(c) for the plan year, and
(ii) by the amount reserved for plan administration under
subsection (d).
(C) Increases
The amount determined under subparagraph (A)(ii) shall be
increased -
(i) by any reduction in the total premium payments required
to be paid under section 9704(a) by reason of transfers
described in section 9705,
(ii) by any carryover to the plan year from any preceding
plan year which -
(I) is derived from amounts described in section
9704(e)(3)(B)(i), and
(II) the trustees elect to use to pay benefits for the
current plan year, and
(iii) any interest earned by the Combined Fund which the
trustees elect to use to pay benefits for the current plan
year.
(3) Qualified providers
The trustees of the Combined Fund shall not enter into an
agreement under paragraph (1) with any provider of services which
is of a type which is required to be certified by the Secretary
of Health and Human Services when providing services under title
XVIII of the Social Security Act unless the provider is so
certified.
(4) Effective date
Benefits shall be provided under paragraph (1) on and after
February 1, 1993.
(c) Death benefits coverage
(1) In general
The trustees of the Combined Fund shall provide death benefits
coverage to each eligible beneficiary described in subsection
(f)(1) which is identical to the benefits provided under the 1950
UMWA Pension Plan or 1974 UMWA Pension Plan, whichever is
applicable, on July 20, 1992. Such coverage shall be provided on
and after February 1, 1993.
(2) Termination of coverage
The 1950 UMWA Pension Plan and the 1974 UMWA Pension Plan shall
each be amended to provide that death benefits coverage shall not
be provided to eligible beneficiaries on and after February 1,
1993. This paragraph shall not prohibit such plans from
subsequently providing death benefits not described in paragraph
(1).
(d) Reserves for administration
The trustees of the Combined Fund may reserve for each plan year,
for use in payment of the administrative costs of the Combined
Fund, an amount not to exceed 5 percent of the premiums to be paid
to the Combined Fund under section 9704(a) during the plan year.
(e) Limitation on enrollment
The Combined Fund shall not enroll any individual who is not
receiving benefits under the 1950 UMWA Benefit Plan or the 1974
UMWA Benefit Plan as of July 20, 1992.
(f) Eligible beneficiary
For purposes of this subchapter, the term "eligible beneficiary"
means an individual who -
(1) is a coal industry retiree who, on July 20, 1992, was
eligible to receive, and receiving, benefits from the 1950 UMWA
Benefit Plan or the 1974 UMWA Benefit Plan, or
(2) on such date was eligible to receive, and receiving,
benefits in either such plan by reason of a relationship to such
retiree.
-SOURCE-
(Added Pub. L. 102-486, title XIX, Sec. 19143(a), Oct. 24, 1992,
106 Stat. 3041.)
-REFTEXT-
REFERENCES IN TEXT
The Social Security Act, referred to in subsec. (b)(3), is act
Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Title XVIII of
the Act is classified generally to subchapter XVIII (Sec. 1395 et
seq.) of chapter 7 of Title 42, The Public Health and Welfare. For
complete classification of this Act to the Code, see section 1305
of Title 42 and Tables.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 9701, 9704 of this title.
-End-
-CITE-
26 USC PART II - FINANCING 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle J - Coal Industry Health Benefits
CHAPTER 99 - COAL INDUSTRY HEALTH BENEFITS
Subchapter B - Combined Benefit Fund
PART II - FINANCING
-HEAD-
PART II - FINANCING
-MISC1-
Sec.
9704. Liability of assigned operators.
9705. Transfers.
9706. Assignment of eligible beneficiaries.
-End-
-CITE-
26 USC Sec. 9704 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle J - Coal Industry Health Benefits
CHAPTER 99 - COAL INDUSTRY HEALTH BENEFITS
Subchapter B - Combined Benefit Fund
PART II - FINANCING
-HEAD-
Sec. 9704. Liability of assigned operators
-STATUTE-
(a) Annual premiums
Each assigned operator shall pay to the Combined Fund for each
plan year beginning on or after February 1, 1993, an annual premium
equal to the sum of the following three premiums -
(1) the health benefit premium determined under subsection (b)
for such plan year, plus
(2) the death benefit premium determined under subsection (c)
for such plan year, plus
(3) the unassigned beneficiaries premium determined under
subsection (d) for such plan year.
Any related person with respect to an assigned operator shall be
jointly and severally liable for any premium required to be paid by
such operator.
(b) Health benefit premium
For purposes of this chapter -
(1) In general
The health benefit premium for any plan year for any assigned
operator shall be an amount equal to the product of the per
beneficiary premium for the plan year multiplied by the number of
eligible beneficiaries assigned to such operator under section
9706.
(2) Per beneficiary premium
The Commissioner of Social Security shall calculate a per
beneficiary premium for each plan year beginning on or after
February 1, 1993, which is equal to the sum of -
(A) the amount determined by dividing -
(i) the aggregate amount of payments from the 1950 UMWA
Benefit Plan and the 1974 UMWA Benefit Plan for health
benefits (less reimbursements but including administrative
costs) for the plan year beginning July 1, 1991, for all
individuals covered under such plans for such plan year, by
(ii) the number of such individuals, plus
(B) the amount determined under subparagraph (A) multiplied
by the percentage (if any) by which the medical component of
the Consumer Price Index for the calendar year in which the
plan year begins exceeds such component for 1992.
(3) Adjustments for medicare reductions
If, by reason of a reduction in benefits under title XVIII of
the Social Security Act, the level of health benefits under the
Combined Fund would be reduced, the trustees of the Combined Fund
shall increase the per beneficiary premium for the plan year in
which the reduction occurs and each subsequent plan year by the
amount necessary to maintain the level of health benefits which
would have been provided without such reduction.
(c) Death benefit premium
The death benefit premium for any plan year for any assigned
operator shall be equal to the applicable percentage of the amount,
actuarially determined, which the Combined Fund will be required to
pay during the plan year for death benefits coverage described in
section 9703(c).
(d) Unassigned beneficiaries premium
The unassigned beneficiaries premium for any plan year for any
assigned operator shall be equal to the applicable percentage of
the product of the per beneficiary premium for the plan year
multiplied by the number of eligible beneficiaries who are not
assigned under section 9706 to any person for such plan year.
(e) Premium accounts; adjustments
(1) Accounts
The trustees of the Combined Fund shall establish and maintain
3 separate accounts for each of the premiums described in
subsections (b), (c), and (d). Such accounts shall be credited
with the premiums received and debited with expenditures
allocable to such premiums.
(2) Allocations
(A) Administrative expenses
Administrative costs for any plan year shall be allocated to
premium accounts under paragraph (1) on the basis of
expenditures (other than administrative costs) from such
accounts during the preceding plan year.
(B) Interest
Interest shall be allocated to the account established for
health benefit premiums.
(3) Shortfalls and surpluses
(A) In general
Except as provided in subparagraph (B), if, for any plan
year, there is a shortfall or surplus in any premium account,
the premium for the following plan year for each assigned
operator shall be proportionately reduced or increased,
whichever is applicable, by the amount of such shortfall or
surplus.
(B) Exception
Subparagraph (A) shall not apply to any surplus in the health
benefit premium account or the unassigned beneficiaries premium
account which is attributable to -
(i) the excess of the premiums credited to such account for
a plan year over the benefits (and administrative costs)
debited to such account for the plan year, but such excess
shall only be available for purposes of the carryover
described in section 9703(b)(2)(C)(ii) (relating to
carryovers of premiums not used to provide benefits), or
(ii) interest credited under paragraph (2)(B) for the plan
year or any preceding plan year.
(C) No authority for increased payments
Nothing in this paragraph shall be construed to allow
expenditures for health care benefits for any plan year in
excess of the limit under section 9703(b)(2).
(f) Applicable percentage
For purposes of this section -
(1) In general
The term "applicable percentage" means, with respect to any
assigned operator, the percentage determined by dividing the
number of eligible beneficiaries assigned under section 9706 to
such operator by the total number of eligible beneficiaries
assigned under section 9706 to all such operators (determined on
the basis of assignments as of October 1, 1993).
(2) Annual adjustments
In the case of any plan year beginning on or after October 1,
1994, the applicable percentage for any assigned operator shall
be redetermined under paragraph (1) by making the following
changes to the assignments as of October 1, 1993:
(A) Such assignments shall be modified to reflect any changes
during the period beginning October 1, 1993, and ending on the
last day of the preceding plan year pursuant to the appeals
process under section 9706(f).
(B) The total number of assigned eligible beneficiaries shall
be reduced by the eligible beneficiaries of assigned operators
which (and all related persons with respect to which) had
ceased business (within the meaning of section 9701(c)(6))
during the period described in subparagraph (A).
(g) Payment of premiums
(1) In general
The annual premium under subsection (a) for any plan year shall
be payable in 12 equal monthly installments, due on the
twenty-fifth day of each calendar month in the plan year. In the
case of the plan year beginning February 1, 1993, the annual
premium under subsection (a) shall be added to such premium for
the plan year beginning October 1, 1993.
(2) Deductibility
Any premium required by this section shall be deductible
without regard to any limitation on deductibility based on the
prefunding of health benefits.
(h) Information
The trustees of the Combined Fund shall, not later than 60 days
after the enactment date, furnish to the Commissioner of Social
Security information as to the benefits and covered beneficiaries
under the fund, and such other information as the Secretary (!1)
may require to compute any premium under this section.
(i) Transition rules
(1) 1988 agreement operators
(A) 1st year costs
During the plan year of the Combined Fund beginning February
1, 1993, the 1988 agreement operators shall make contributions
to the Combined Fund in amounts necessary to pay benefits and
administrative costs of the Combined Fund incurred during such
year, reduced by the amount transferred to the Combined Fund
under section 9705(a) on February 1, 1993.
(B) Deficits from merged plans
During the period beginning February 1, 1993, and ending
September 30, 1994, the 1988 agreement operators shall make
contributions to the Combined Fund as are necessary to pay off
the expenses accrued (and remaining unpaid) by the 1950 UMWA
Benefit Plan and the 1974 UMWA Benefit Plan as of February 1,
1993, reduced by the assets of such plans as of such date.
(C) Failure
If any 1988 agreement operator fails to meet any obligation
under this paragraph, any contributions of such operator to the
Combined Fund or any other plan described in section 404(c)
shall not be deductible under this title until such time as the
failure is corrected.
(D) Premium reductions
(i) 1st year payments
In the case of a 1988 agreement operator making
contributions under subparagraph (A), the premium of such
operator under subsection (a) shall be reduced by the amount
paid under subparagraph (A) by such operator for the plan
year beginning February 1, 1993.
(ii) Deficit payments
In the case a 1988 agreement operator making contributions
under subparagraph (B), the premium of such operator under
subsection (a) shall be reduced by the amounts which are paid
to the Combined Fund by reason of claims arising in
connection with the 1950 UMWA Benefit Plan and the 1974 UMWA
Benefit Plan as of February 1, 1993, including claims based
on the "evergreen clause" found in the language of the 1950
UMWA Benefit Plan and the 1974 UMWA Benefit Plan, and which
are allocated to such operator under subparagraph (E).
(iii) Limitation
Clause (ii) shall not apply to the extent the amounts paid
exceed the contributions.
(iv) Plan years
Premiums under subsection (a) shall be reduced for the
first plan year for which amounts described in clause (i) or
(ii) are available and for any succeeding plan year until
such amounts are exhausted.
(E) Allocations of contributions and refunds
Contributions under subparagraphs (A) and (B), and premium
reductions under subparagraph (D)(ii), shall be made ratably on
the basis of aggregate contributions made by such operators
under the applicable 1988 coal wage agreements as of January
31, 1993.
(2) 1st plan year
In the case of the plan year of the Combined Fund beginning
February 1, 1993 -
(A) the premiums under subsections (a)(1) and (a)(3) shall be
67 percent of such premiums without regard to this paragraph,
and
(B) the premiums under subsection (a) shall be paid as
provided in subsection (g).
(3) Startup costs
The 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan shall
pay the costs of the Combined Fund incurred before February 1,
1993. For purposes of this section, such costs shall be treated
as administrative expenses incurred for the plan year beginning
February 1, 1993.
-SOURCE-
(Added Pub. L. 102-486, title XIX, Sec. 19143(a), Oct. 24, 1992,
106 Stat. 3042; amended Pub. L. 103-296, title I, Sec.
108(h)(9)(A), Aug. 15, 1994, 108 Stat. 1487.)
-REFTEXT-
REFERENCES IN TEXT
The Social Security Act, referred to in subsec. (b)(3), is act
Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Title XVIII of
the Act is classified generally to subchapter XVIII (Sec. 1395 et
seq.) of chapter 7 of Title 42, The Public Health and Welfare. For
complete classification of this Act to the Code, see section 1305
of Title 42 and Tables.
-MISC1-
AMENDMENTS
1994 - Subsecs. (b)(2), (h). Pub. L. 103-296 substituted
"Commissioner of Social Security" for "Secretary of Health and
Human Services".
EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by Pub. L. 103-296 effective Mar. 31, 1995, see section
110(a) of Pub. L. 103-296, set out as a note under section 401 of
Title 42, The Public Health and Welfare.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 9703, 9705, 9706, 9707 of
this title; title 30 section 1232.
-FOOTNOTE-
(!1) So in original. Probably should be "Commissioner".
-End-
-CITE-
26 USC Sec. 9705 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle J - Coal Industry Health Benefits
CHAPTER 99 - COAL INDUSTRY HEALTH BENEFITS
Subchapter B - Combined Benefit Fund
PART II - FINANCING
-HEAD-
Sec. 9705. Transfers
-STATUTE-
(a) Transfer of assets from 1950 UMWA Pension Plan
(1) In general
From the funds reserved under paragraph (2), the board of
trustees of the 1950 UMWA Pension Plan shall transfer to the
Combined Fund -
(A) $70,000,000 on February 1, 1993,
(B) $70,000,000 on October 1, 1993, and
(C) $70,000,000 on October 1, 1994.
(2) Reservation
Immediately upon the enactment date, the board of trustees of
the 1950 UMWA Pension Plan shall segregate $210,000,000 from the
general assets of the plan. Such funds shall be held in the plan
until disbursed pursuant to paragraph (1). Any interest on such
funds shall be deposited into the general assets of the 1950 UMWA
Pension Plan.
(3) Use of funds
Amounts transferred to the Combined Fund under paragraph (1)
shall -
(A) in the case of the transfer on February 1, 1993, be used
to proportionately reduce the premium of each assigned operator
under section 9704(a) for the plan year of the Fund beginning
February 1, 1993, and
(B) in the case of any other such transfer, be used to
proportionately reduce the unassigned beneficiary premium under
section 9704(a)(3) and the death benefit premium under section
9704(a)(2) of each assigned operator for the plan year in which
transferred and for any subsequent plan year in which such
funds remain available.
Such funds may not be used to pay any amounts required to be paid
by the 1988 agreement operators under section 9704(i)(1)(B).
(4) Tax treatment; validity of transfer
(A) No deduction
No deduction shall be allowed under this title with respect
to any transfer pursuant to paragraph (1), but such transfer
shall not adversely affect the deductibility (under applicable
provisions of this title) of contributions previously made by
employers, or amounts hereafter contributed by employers, to
the 1950 UMWA Pension Plan, the 1950 UMWA Benefit Plan, the
1974 UMWA Pension Plan, the 1974 UMWA Benefit Plan, the 1992
UMWA Benefit Plan, or the Combined Fund.
(B) Other tax provisions
Any transfer pursuant to paragraph (1) -
(i) shall not be treated as an employer reversion from a
qualified plan for purposes of section 4980, and
(ii) shall not be includible in the gross income of any
employer maintaining the 1950 UMWA Pension Plan.
(5) Treatment of transfer
Any transfer pursuant to paragraph (1) shall not be deemed to
violate, or to be prohibited by, any provision of law, or to
cause the settlors, joint board of trustees, employers or any
related person to incur or be subject to liability, taxes, fines,
or penalties of any kind whatsoever.
(b) Transfers from abandoned mine reclamation fund
(1) In general
The Combined Fund shall include any amount transferred to the
Fund under section 402(h) of the Surface Mining Control and
Reclamation Act of 1977 (30 U.S.C. 1232(h)).
(2) Use of funds
Any amount transferred under paragraph (1) for any fiscal year
shall be used to proportionately reduce the unassigned
beneficiary premium under section 9704(a)(3) of each assigned
operator for the plan year in which transferred.
-SOURCE-
(Added Pub. L. 102-486, title XIX, Sec. 19143(a), Oct. 24, 1992,
106 Stat. 3046.)
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 9703, 9704 of this title.
-End-
-CITE-
26 USC Sec. 9706 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle J - Coal Industry Health Benefits
CHAPTER 99 - COAL INDUSTRY HEALTH BENEFITS
Subchapter B - Combined Benefit Fund
PART II - FINANCING
-HEAD-
Sec. 9706. Assignment of eligible beneficiaries
-STATUTE-
(a) In general
For purposes of this chapter, the Commissioner of Social Security
shall, before October 1, 1993, assign each coal industry retiree
who is an eligible beneficiary to a signatory operator which (or
any related person with respect to which) remains in business in
the following order:
(1) First, to the signatory operator which -
(A) was a signatory to the 1978 coal wage agreement or any
subsequent coal wage agreement, and
(B) was the most recent signatory operator to employ the coal
industry retiree in the coal industry for at least 2 years.
(2) Second, if the retiree is not assigned under paragraph (1),
to the signatory operator which -
(A) was a signatory to the 1978 coal wage agreement or any
subsequent coal wage agreement, and
(B) was the most recent signatory operator to employ the coal
industry retiree in the coal industry.
(3) Third, if the retiree is not assigned under paragraph (1)
or (2), to the signatory operator which employed the coal
industry retiree in the coal industry for a longer period of time
than any other signatory operator prior to the effective date of
the 1978 coal wage agreement.
(b) Rules relating to employment and reassignment upon purchase
For purposes of subsection (a) -
(1) Aggregation rules
(A) Related person
Any employment of a coal industry retiree in the coal
industry by a signatory operator shall be treated as employment
by any related persons to such operator.
(B) Certain employment disregarded
Employment with -
(i) a person which is (and all related persons with respect
to which are) no longer in business, or
(ii) a person during a period during which such person was
not a signatory to a coal wage agreement,
shall not be taken into account.
(2) Reassignment upon purchase
If a person becomes a successor of an assigned operator after
the enactment date, the assigned operator may transfer the
assignment of an eligible beneficiary under subsection (a) to
such successor, and such successor shall be treated as the
assigned operator with respect to such eligible beneficiary for
purposes of this chapter. Notwithstanding the preceding sentence,
the assigned operator transferring such assignment (and any
related person) shall remain the guarantor of the benefits
provided to the eligible beneficiary under this chapter. An
assigned operator shall notify the trustees of the Combined Fund
of any transfer described in this paragraph.
(c) Identification of eligible beneficiaries
The 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan shall,
by the later of October 1, 1992, or the twentieth day after the
enactment date, provide to the Commissioner of Social Security a
list of the names and social security account numbers of each
eligible beneficiary, including each deceased eligible beneficiary
if any other individual is an eligible beneficiary by reason of a
relationship to such deceased eligible beneficiary. In addition,
the plans shall provide, where ascertainable from plan records, the
names of all persons described in subsection (a) with respect to
any eligible beneficiary or deceased eligible beneficiary.
(d) Cooperation by other agencies and persons
(1) Cooperation
The head of any department, agency, or instrumentality of the
United States shall cooperate fully and promptly with the
Commissioner of Social Security in providing information which
will enable the Commissioner to carry out his responsibilities
under this section.
(2) Providing of information
(A) In general
Notwithstanding any other provision of law, including section
6103, the head of any other agency, department, or
instrumentality shall, upon receiving a written request from
the Commissioner of Social Security in connection with this
section, cause a search to be made of the files and records
maintained by such agency, department, or instrumentality with
a view to determining whether the information requested is
contained in such files or records. The Commissioner shall be
advised whether the search disclosed the information requested,
and, if so, such information shall be promptly transmitted to
the Commissioner, except that if the disclosure of any
requested information would contravene national policy or
security interests of the United States, or the confidentiality
of census data, the information shall not be transmitted and
the Commissioner shall be so advised.
(B) Limitation
Any information provided under subparagraph (A) shall be
limited to information necessary for the Commissioner to carry
out his duties under this section.
(3) Trustees
The trustees of the Combined Fund, the 1950 UMWA Benefit Plan,
the 1974 UMWA Benefit Plan, the 1950 UMWA Pension Plan, and the
1974 UMWA Pension Plan shall fully and promptly cooperate with
the Commissioner in furnishing, or assisting the Commissioner to
obtain, any information the Commissioner needs to carry out the
Commissioner's responsibilities under this section.
(e) Notice by Commissioner
(1) Notice to Fund
The Commissioner of Social Security shall advise the trustees
of the Combined Fund of the name of each person identified under
this section as an assigned operator, and the names and social
security account numbers of eligible beneficiaries with respect
to whom he is identified.
(2) Other notice
The Commissioner of Social Security shall notify each assigned
operator of the names and social security account numbers of
eligible beneficiaries who have been assigned to such person
under this section and a brief summary of the facts related to
the basis for such assignments.
(f) Reconsideration by Commissioner
(1) In general
Any assigned operator receiving a notice under subsection
(e)(2) with respect to an eligible beneficiary may, within 30
days of receipt of such notice, request from the Commissioner of
Social Security detailed information as to the work history of
the beneficiary and the basis of the assignment.
(2) Review
An assigned operator may, within 30 days of receipt of the
information under paragraph (1), request review of the
assignment. The Commissioner of Social Security shall conduct
such review if the Commissioner finds the operator provided
evidence with the request constituting a prima facie case of
error.
(3) Results of review
(A) Error
If the Commissioner of Social Security determines under a
review under paragraph (2) that an assignment was in error -
(i) the Commissioner shall notify the assigned operator and
the trustees of the Combined Fund and the trustees shall
reduce the premiums of the operator under section 9704 by (or
if there are no such premiums, repay) all premiums paid under
section 9704 with respect to the eligible beneficiary, and
(ii) the Commissioner shall review the beneficiary's record
for reassignment under subsection (a).
(B) No error
If the Commissioner of Social Security determines under a
review conducted under paragraph (2) that no error occurred,
the Commissioner shall notify the assigned operator.
(4) Determinations
Any determination by the Commissioner of Social Security under
paragraph (2) or (3) shall be final.
(5) Payment pending review
An assigned operator shall pay the premiums under section 9704
pending review by the Commissioner of Social Security or by a
court under this subsection.
(6) Private actions
Nothing in this section shall preclude the right of any person
to bring a separate civil action against another person for
responsibility for assigned premiums, notwithstanding any prior
decision by the Commissioner.
(g) Confidentiality of information
Any person to which information is provided by the Commissioner
of Social Security under this section shall not disclose such
information except in any proceedings related to this section. Any
civil or criminal penalty which is applicable to an unauthorized
disclosure under section 6103 shall apply to any unauthorized
disclosure under this section.
-SOURCE-
(Added Pub. L. 102-486, title XIX, Sec. 19143(a), Oct. 24, 1992,
106 Stat. 3047; amended Pub. L. 103-296, title I, Sec.
108(h)(9)(B), Aug. 15, 1994, 108 Stat. 1487.)
-MISC1-
AMENDMENTS
1994 - Subsecs. (a), (c) to (g). Pub. L. 103-296 substituted
"Commissioner of Social Security" for "Secretary of Health and
Human Services", "Commissioner" for "Secretary", and
"Commissioner's" for "Secretary's", wherever appearing in text.
EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by Pub. L. 103-296 effective Mar. 31, 1995, see section
110(a) of Pub. L. 103-296, set out as a note under section 401 of
Title 42, The Public Health and Welfare.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 9701, 9702, 9704 of this
title.
-End-
-CITE-
26 USC PART III - ENFORCEMENT 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle J - Coal Industry Health Benefits
CHAPTER 99 - COAL INDUSTRY HEALTH BENEFITS
Subchapter B - Combined Benefit Fund
PART III - ENFORCEMENT
-HEAD-
PART III - ENFORCEMENT
-MISC1-
Sec.
9707. Failure to pay premium.
-End-
-CITE-
26 USC Sec. 9707 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle J - Coal Industry Health Benefits
CHAPTER 99 - COAL INDUSTRY HEALTH BENEFITS
Subchapter B - Combined Benefit Fund
PART III - ENFORCEMENT
-HEAD-
Sec. 9707. Failure to pay premium
-STATUTE-
(a) General rule
There is hereby imposed a penalty on the failure of any assigned
operator to pay any premium required to be paid under section 9704
with respect to any eligible beneficiary.
(b) Amount of penalty
The amount of the penalty imposed by subsection (a) on any
failure with respect to any eligible beneficiary shall be $100 per
day in the noncompliance period with respect to any such failure.
(c) Noncompliance period
For purposes of this section, the term "noncompliance period"
means, with respect to any failure to pay any premium or
installment thereof, the period -
(1) beginning on the due date for such premium or installment,
and
(2) ending on the date of payment of such premium or
installment.
(d) Limitations on amount of penalty
(1) In general
No penalty shall be imposed by subsection (a) on any failure
during any period for which it is established to the satisfaction
of the Secretary of the Treasury that none of the persons
responsible for such failure knew, or exercising reasonable
diligence would have known, that such failure existed.
(2) Corrections
No penalty shall be imposed by subsection (a) on any failure if
-
(A) such failure was due to reasonable cause and not to
willful neglect, and
(B) such failure is corrected during the 30-day period
beginning on the 1st date that any of the persons responsible
for such failure knew, or exercising reasonable diligence would
have known, that such failure existed.
(3) Waiver
In the case of a failure that is due to reasonable cause and
not to willful neglect, the Secretary of the Treasury may waive
all or part of the penalty imposed by subsection (a) for failures
to the extent that the Secretary determines, in his sole
discretion, that the payment of such penalty would be excessive
relative to the failure involved.
(e) Liability for penalty
The person failing to meet the requirements of section 9704 shall
be liable for the penalty imposed by subsection (a).
(f) Treatment
For purposes of this title, the penalty imposed by this section
shall be treated in the same manner as the tax imposed by section
4980B.
-SOURCE-
(Added Pub. L. 102-486, title XIX, Sec. 19143(a), Oct. 24, 1992,
106 Stat. 3050; amended Pub. L. 104-188, title I, Sec. 1704(t)(65),
Aug. 20, 1996, 110 Stat. 1890.)
-MISC1-
AMENDMENTS
1996 - Subsec. (d)(1). Pub. L. 104-188 struck out comma after
"diligence".
-End-
-CITE-
26 USC PART IV - OTHER PROVISIONS 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle J - Coal Industry Health Benefits
CHAPTER 99 - COAL INDUSTRY HEALTH BENEFITS
Subchapter B - Combined Benefit Fund
PART IV - OTHER PROVISIONS
-HEAD-
PART IV - OTHER PROVISIONS
-MISC1-
Sec.
9708. Effect on pending claims or obligations.
-End-
-CITE-
26 USC Sec. 9708 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle J - Coal Industry Health Benefits
CHAPTER 99 - COAL INDUSTRY HEALTH BENEFITS
Subchapter B - Combined Benefit Fund
PART IV - OTHER PROVISIONS
-HEAD-
Sec. 9708. Effect on pending claims or obligations
-STATUTE-
All liability for contributions to the Combined Fund that arises
on and after February 1, 1993, shall be determined exclusively
under this chapter, including all liability for contributions to
the 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan for coal
production on and after February 1, 1993. However, nothing in this
chapter is intended to have any effect on any claims or obligations
arising in connection with the 1950 UMWA Benefit Plan and the 1974
UMWA Benefit Plan as of February 1, 1993, including claims or
obligations based on the "evergreen" clause found in the language
of the 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan. This
chapter shall not be construed to affect any rights of subrogation
of any 1988 agreement operator with respect to contributions due to
the 1950 UMWA Benefit Plan or the 1974 UMWA Benefit Plan as of
February 1, 1993.
-SOURCE-
(Added Pub. L. 102-486, title XIX, Sec. 19143(a), Oct. 24, 1992,
106 Stat. 3051.)
-End-
-CITE-
26 USC Subchapter C - Health Benefits of Certain Miners 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle J - Coal Industry Health Benefits
CHAPTER 99 - COAL INDUSTRY HEALTH BENEFITS
Subchapter C - Health Benefits of Certain Miners
-HEAD-
SUBCHAPTER C - HEALTH BENEFITS OF CERTAIN MINERS
-MISC1-
Part
I. Individual employer plans.
II. 1992 UMWA benefit plan.
-End-
-CITE-
26 USC PART I - INDIVIDUAL EMPLOYER PLANS 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle J - Coal Industry Health Benefits
CHAPTER 99 - COAL INDUSTRY HEALTH BENEFITS
Subchapter C - Health Benefits of Certain Miners
PART I - INDIVIDUAL EMPLOYER PLANS
-HEAD-
PART I - INDIVIDUAL EMPLOYER PLANS
-MISC1-
Sec.
9711. Continued obligations of individual employer plans.
-End-
-CITE-
26 USC Sec. 9711 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle J - Coal Industry Health Benefits
CHAPTER 99 - COAL INDUSTRY HEALTH BENEFITS
Subchapter C - Health Benefits of Certain Miners
PART I - INDIVIDUAL EMPLOYER PLANS
-HEAD-
Sec. 9711. Continued obligations of individual employer plans
-STATUTE-
(a) Coverage of current recipients
The last signatory operator of any individual who, as of February
1, 1993, is receiving retiree health benefits from an individual
employer plan maintained pursuant to a 1978 or subsequent coal wage
agreement shall continue to provide health benefits coverage to
such individual and the individual's eligible beneficiaries which
is substantially the same as (and subject to all the limitations
of) the coverage provided by such plan as of January 1, 1992. Such
coverage shall continue to be provided for as long as the last
signatory operator (and any related person) remains in business.
(b) Coverage of eligible recipients
(1) In general
The last signatory operator of any individual who, as of
February 1, 1993, is not receiving retiree health benefits under
the individual employer plan maintained by the last signatory
operator pursuant to a 1978 or subsequent coal wage agreement,
but has met the age and service requirements for eligibility to
receive benefits under such plan as of such date, shall, at such
time as such individual becomes eligible to receive benefits
under such plan, provide health benefits coverage to such
individual and the individual's eligible beneficiaries which is
described in paragraph (2). This paragraph shall not apply to any
individual who retired from the coal industry after September 30,
1994, or any eligible beneficiary of such individual.
(2) Coverage
Subject to the provisions of subsection (d), health benefits
coverage is described in this paragraph if it is substantially
the same as (and subject to all the limitations of) the coverage
provided by the individual employer plan as of January 1, 1992.
Such coverage shall continue for as long as the last signatory
operator (and any related person) remains in business.
(c) Joint and several liability of related persons
Each related person of a last signatory operator to which
subsection (a) or (b) applies shall be jointly and severally liable
with the last signatory operator for the provision of health care
coverage described in subsection (a) or (b).
(d) Managed care and cost containment
The last signatory operator shall not be treated as failing to
meet the requirements of subsection (a) or (b) if benefits are
provided to eligible beneficiaries under managed care and cost
containment rules and procedures described in section 9712(c) or
agreed to by the last signatory operator and the United Mine
Workers of America.
(e) Treatment of noncovered employees
The existence, level, and duration of benefits provided to former
employees of a last signatory operator (and their eligible
beneficiaries) who are not otherwise covered by this chapter and
who are (or were) covered by a coal wage agreement shall only be
determined by, and shall be subject to, collective bargaining,
lawful unilateral action, or other applicable law.
(f) Eligible beneficiary
For purposes of this section, the term "eligible beneficiary"
means any individual who is eligible for health benefits under a
plan described in subsection (a) or (b) by reason of the
individual's relationship with the retiree described in such
subsection (or to an individual who, based on service and
employment history at the time of death, would have been so
described but for such death).
(g) Rules applicable to this part and part II
For purposes of this part and part II -
(1) Successor
The term "last signatory operator" shall include a successor in
interest of such operator.
(2) Reassignment upon purchase
If a person becomes a successor of a last signatory operator
after the enactment date, the last signatory operator may
transfer any liability of such operator under this chapter with
respect to an eligible beneficiary to such successor, and such
successor shall be treated as the last signatory operator with
respect to such eligible beneficiary for purposes of this
chapter. Notwithstanding the preceding sentence, the last
signatory operator transferring such assignment (and any related
person) shall remain the guarantor of the benefits provided to
the eligible beneficiary under this chapter. A last signatory
operator shall notify the trustees of the 1992 UMWA Benefit Plan
of any transfer described in this paragraph.
-SOURCE-
(Added Pub. L. 102-486, title XIX, Sec. 19143(a), Oct. 24, 1992,
106 Stat. 3051.)
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 9712 of this title.
-End-
-CITE-
26 USC PART II - 1992 UMWA BENEFIT PLAN 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle J - Coal Industry Health Benefits
CHAPTER 99 - COAL INDUSTRY HEALTH BENEFITS
Subchapter C - Health Benefits of Certain Miners
PART II - 1992 UMWA BENEFIT PLAN
-HEAD-
PART II - 1992 UMWA BENEFIT PLAN
-MISC1-
Sec.
9712. Establishment and coverage of 1992 UMWA Benefit Plan.
-SECREF-
PART REFERRED TO IN OTHER SECTIONS
This part is referred to in section 9711 of this title.
-End-
-CITE-
26 USC Sec. 9712 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle J - Coal Industry Health Benefits
CHAPTER 99 - COAL INDUSTRY HEALTH BENEFITS
Subchapter C - Health Benefits of Certain Miners
PART II - 1992 UMWA BENEFIT PLAN
-HEAD-
Sec. 9712. Establishment and coverage of 1992 UMWA Benefit Plan
-STATUTE-
(a) Creation of plan
(1) In general
As soon as practicable after the enactment date, the settlors
shall create a separate private plan which shall be known as the
United Mine Workers of America 1992 Benefit Plan. For purposes of
this title, the 1992 UMWA Benefit Plan shall be treated as an
organization exempt from taxation under section 501(a). The
settlors shall be responsible for designing the structure,
administration and terms of the 1992 UMWA Benefit Plan, and for
appointment and removal of the members of the board of trustees.
The board of trustees shall initially consist of five members and
shall thereafter be the number set by the settlors.
(2) Treatment of plan
The 1992 UMWA Benefit Plan shall be -
(A) a plan described in section 302(c)(5) of the Labor
Management Relations Act, 1947 (29 U.S.C. 186(c)(5)),
(B) an employee welfare benefit plan within the meaning of
section 3(1) of the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1002(1)), and
(C) a multiemployer plan within the meaning of section 3(37)
of such Act (29 U.S.C. 1002(37)).
(b) Coverage requirement
(1) In general
The 1992 UMWA Benefit Plan shall only provide health benefits
coverage to any eligible beneficiary who is not eligible for
benefits under the Combined Fund and shall not provide such
coverage to any other individual.
(2) Eligible beneficiary
For purposes of this section, the term "eligible beneficiary"
means an individual who -
(A) but for the enactment of this chapter, would be eligible
to receive benefits from the 1950 UMWA Benefit Plan or the 1974
UMWA Benefit Plan, based upon age and service earned as of
February 1, 1993; or
(B) with respect to whom coverage is required to be provided
under section 9711, but who does not receive such coverage from
the applicable last signatory operator or any related person,
and any individual who is eligible for benefits by reason of a
relationship to an individual described in subparagraph (A) or
(B). In no event shall the 1992 UMWA Benefit Plan provide health
benefits coverage to any eligible beneficiary who is a coal
industry retiree who retired from the coal industry after
September 30, 1994, or any beneficiary of such individual.
(c) Health benefits
(1) In general
The 1992 UMWA Benefit Plan shall provide health care benefits
coverage to each eligible beneficiary which is substantially the
same as (and subject to all the limitations of) coverage provided
under the 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan
as of January 1, 1992.
(2) Managed care
The 1992 UMWA Benefit Plan shall develop managed care and cost
containment rules which shall be applicable to the payment of
benefits under this subsection. Application of such rules shall
not cause the plan to be treated as failing to meet the
requirements of this subsection. Such rules shall preserve
freedom of choice while reinforcing managed care network use by
allowing a point of service decision as to whether a network
medical provider will be used. Major elements of such rules may
include, but are not limited to, elements described in paragraph
(3).
(3) Major elements of rules
Elements described in this paragraph are -
(A) implementing formulary for drugs and subjecting the
prescription program to a rigorous review of appropriate use,
(B) obtaining a unit price discount in exchange for patient
volume and preferred provider status with the amount of the
potential discount varying by geographic region,
(C) limiting benefit payments to physicians to the allowable
charge under title XVIII of the Social Security Act, while
protecting beneficiaries from balance billing by providers,
(D) utilizing, in the claims payment function
"appropriateness of service" protocols under title XVIII of the
Social Security Act if more stringent,
(E) creating mandatory utilization review (UR) procedures,
but placing the responsibility to follow such procedures on the
physician or hospital, not the beneficiaries,
(F) selecting the most efficient physicians and
state-of-the-art utilization management techniques, including
ambulatory care techniques, for medical services delivered by
the managed care network, and
(G) utilizing a managed care network provider system, as
practiced in the health care industry, at the time medical
services are needed (point-of-service) in order to receive
maximum benefits available under this subsection.
(4) Last signatory operators
The board of trustees of the 1992 UMWA Benefit Plan shall
permit any last signatory operator required to maintain an
individual employer plan under section 9711 to utilize the
managed care and cost containment rules and programs developed
under this subsection if the operator elects to do so.
(5) Standards of quality
Any managed care system or cost containment adopted by the
board of trustees of the 1992 UMWA Benefit Plan or by a last
signatory operator may not be implemented unless it is approved
by, and meets the standards of quality adopted by, a medical peer
review panel, which has been established -
(A) by the settlors, or
(B) by the United Mine Workers of America and a last
signatory operator or group of operators.
Standards of quality shall include accessibility to medical care,
taking into account that accessibility requirements may differ
depending on the nature of the medical need.
(d) Guarantee of benefits
(1) In general
All 1988 last signatory operators shall be responsible for
financing the benefits described in subsection (c), in accordance
with contribution requirements established in the 1992 UMWA
Benefit Plan. Such contribution requirements, which shall be
applied uniformly to each 1988 last signatory operator, on the
basis of the number of eligible and potentially eligible
beneficiaries attributable to each operator, shall include:
(A) the payment of an annual prefunding premium for all
eligible and potentially eligible beneficiaries attributable to
a 1988 last signatory operator,
(B) the payment of a monthly per beneficiary premium by each
1988 last signatory operator for each eligible beneficiary of
such operator who is described in subsection (b)(2) and who is
receiving benefits under the 1992 UMWA Benefit Plan, and
(C) the provision of security (in the form of a bond, letter
of credit or cash escrow) in an amount equal to a portion of
the projected future cost to the 1992 UMWA Benefit Plan of
providing health benefits for eligible and potentially eligible
beneficiaries attributable to the 1988 last signatory operator.
If a 1988 last signatory operator is unable to provide the
security required, the 1992 UMWA Benefit Plan shall require the
operator to pay an annual prefunding premium that is greater
than the premium otherwise applicable.
(2) Adjustments
The 1992 UMWA Benefit Plan shall provide for -
(A) annual adjustments of the per beneficiary premium to
cover changes in the cost of providing benefits to eligible
beneficiaries, and
(B) adjustments as necessary to the annual prefunding premium
to reflect changes in the cost of providing benefits to
eligible beneficiaries for whom per beneficiary premiums are
not paid.
(3) Additional liability
Any last signatory operator who is not a 1988 last signatory
operator shall pay the monthly per beneficiary premium under
paragraph (1)(B) for each eligible beneficiary described in such
paragraph attributable to that operator.
(4) Joint and several liability
A 1988 last signatory operator or last signatory operator
described in paragraph (3), and any related person to any such
operator, shall be jointly and severally liable with such
operator for any amount required to be paid by such operator
under this section.
(5) Deductibility
Any premium required by this section shall be deductible
without regard to any limitation on deductibility based on the
prefunding of health benefits.
(6) 1988 last signatory operator
For purposes of this section, the term "1988 last signatory
operator" means a last signatory operator which is a 1988
agreement operator.
-SOURCE-
(Added Pub. L. 102-486, title XIX, Sec. 19143(a), Oct. 24, 1992,
106 Stat. 3053.)
-REFTEXT-
REFERENCES IN TEXT
The Social Security Act, referred to in subsec. (c)(3)(C), (D),
is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Title
XVIII of the Act is classified generally to subchapter XVIII (Sec.
1395 et seq.) of chapter 7 of Title 42, The Public Health and
Welfare. For complete classification of this Act to the Code, see
section 1305 of Title 42 and Tables.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 9701, 9711 of this title.
-End-
-CITE-
26 USC Subchapter D - Other Provisions 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle J - Coal Industry Health Benefits
CHAPTER 99 - COAL INDUSTRY HEALTH BENEFITS
Subchapter D - Other Provisions
-HEAD-
SUBCHAPTER D - OTHER PROVISIONS
-MISC1-
Sec.
9721. Civil enforcement.
9722. Sham transactions.
-End-
-CITE-
26 USC Sec. 9721 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle J - Coal Industry Health Benefits
CHAPTER 99 - COAL INDUSTRY HEALTH BENEFITS
Subchapter D - Other Provisions
-HEAD-
Sec. 9721. Civil enforcement
-STATUTE-
The provisions of section 4301 of the Employee Retirement Income
Security Act of 1974 shall apply to any claim arising out of an
obligation to pay any amount required to be paid by this chapter in
the same manner as any claim arising out of an obligation to pay
withdrawal liability under subtitle E of title IV of such Act. For
purposes of the preceding sentence, a signatory operator and
related persons shall be treated in the same manner as employers.
-SOURCE-
(Added Pub. L. 102-486, title XIX, Sec. 19143(a), Oct. 24, 1992,
106 Stat. 3055.)
-REFTEXT-
REFERENCES IN TEXT
The Employee Retirement Income Security Act of 1974, referred to
in text, is Pub. L. 93-406, Sept. 2, 1974, 88 Stat. 829, as
amended. Subtitle E of title IV of the Act is classified generally
to subtitle E (Sec. 1381 et seq.) of subchapter III of chapter 18
of Title 29, Labor. Section 4301 of the Act is classified to
section 1451 of Title 29. For complete classification of this Act
to the Code, see Short Title note set out under section 1001 of
Title 29 and Tables.
-End-
-CITE-
26 USC Sec. 9722 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle J - Coal Industry Health Benefits
CHAPTER 99 - COAL INDUSTRY HEALTH BENEFITS
Subchapter D - Other Provisions
-HEAD-
Sec. 9722. Sham transactions
-STATUTE-
If a principal purpose of any transaction is to evade or avoid
liability under this chapter, this chapter shall be applied (and
such liability shall be imposed) without regard to such
transaction.
-SOURCE-
(Added Pub. L. 102-486, title XIX, Sec. 19143(a), Oct. 24, 1992,
106 Stat. 3056.)
-End-
-CITE-
26 USC Subtitle K - Group Health Plan Requirements 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle K - Group Health Plan Requirements
-HEAD-
Subtitle K - Group Health Plan Requirements
-MISC1-
Chapter Sec.(!1)
100. Group health plan requirements 9801
AMENDMENTS
1997 - Pub. L. 105-34, title XV, Sec. 1531(a)(1), Aug. 5, 1997,
111 Stat. 1080, struck out "Portability, Access, and Renewability"
before "Requirements" in subtitle heading and made similar change
in item for chapter 100.
-SECREF-
SUBTITLE REFERRED TO IN OTHER SECTIONS
This subtitle is referred to in title 42 section 1397ii.
-FOOTNOTE-
(!1) Section number editorially supplied.
-End-
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