US (United States) Code. Title 26. Subtitle J: Coal Industry Health Benefits. Chapter 99

Codificación normativa de EEUU (Estados Unidos) Legislación Federal estadounidense # Internal revenue code

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-CITE-

26 USC CHAPTER 99 - COAL INDUSTRY HEALTH BENEFITS 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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-