Subchapter B—Combined Benefit Fund
PART I—ESTABLISHMENT AND BENEFITS
§9702. Establishment of the United Mine Workers of America Combined Benefit Fund
(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 (
(B) an employee welfare benefit plan within the meaning of section 3(1) of the Employee Retirement Income Security Act of 1974 (
(C) a multiemployer plan within the meaning of section 3(37) of such Act (
(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) 2 individuals who represent employers in the coal mining industry shall be designated by the BCOA;
(B) 2 individuals designated by the United Mine Workers of America; and
(C) 3 individuals selected by the individuals appointed under subparagraphs (A) and (B).
(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 rule
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.
(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.
(Added
Editorial Notes
Amendments
2006—Subsec. (b).
§9703. Plan benefits
(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.
(Added
Editorial Notes
References in Text
The Social Security Act, referred to in subsec. (b)(3), is act Aug. 14, 1935, ch. 531,
PART II—FINANCING
§9704. Liability of assigned operators
(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
(1) Plan years ending on or before September 30, 2006
For plan years ending on or before September 30, 2006, the unassigned beneficiaries premium 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.
(2) Plan years beginning on or after October 1, 2006
(A) In general
For plan years beginning on or after October 1, 2006, subject to subparagraph (B), there shall be no unassigned beneficiaries premium, and benefit costs with respect to eligible beneficiaries who are not assigned under section 9706 to any person for any such plan year shall be paid from amounts transferred under section 9705(b).
(B) Inadequate transfers
If, for any plan year beginning on or after October 1, 2006, the amounts transferred under section 9705(b) are less than the amounts required to be transferred to the Combined Fund under subsection (h)(2)(A) or (i) of section 402 of the Surface Mining Control and Reclamation Act of 1977 (
(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 amounts transferred under section 9705(b) 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. Amounts credited to an account from amounts transferred under section 9705(b) shall not be taken into account in determining whether there is a surplus in the account for purposes of this paragraph.
(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).
(C) In the case of plan years beginning on or after October 1, 2007, the total number of assigned eligible beneficiaries shall be reduced by the eligible beneficiaries whose assignments have been revoked under section 9706(h).
(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.
(j) Prepayment of premium liability
(1) In general
If—
(A) a payment meeting the requirements of paragraph (3) is made to the Combined Fund by or on behalf of—
(i) any assigned operator to which this subsection applies, or
(ii) any related person to any assigned operator described in clause (i), and
(B) the common parent of the controlled group of corporations described in paragraph (2)(B) is jointly and severally liable for any premium under this section which (but for this subsection) would be required to be paid by the assigned operator or related person,
then such common parent (and no other person) shall be liable for such premium.
(2) Assigned operators to which subsection applies
(A) In general
This subsection shall apply to any assigned operator if—
(i) the assigned operator (or a related person to the assigned operator)—
(I) made contributions to the 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan for employment during the period covered by the 1988 agreement; and
(II) is not a 1988 agreement operator,
(ii) the assigned operator (and all related persons to the assigned operator) are not actively engaged in the production of coal as of July 1, 2005, and
(iii) the assigned operator was, as of July 20, 1992, a member of a controlled group of corporations described in subparagraph (B).
(B) Controlled group of corporations
A controlled group of corporations is described in this subparagraph if the common parent of such group is a corporation the shares of which are publicly traded on a United States exchange.
(C) Coordination with repeal of assignments
A person shall not fail to be treated as an assigned operator to which this subsection applies solely because the person ceases to be an assigned operator by reason of section 9706(h)(1) if the person otherwise meets the requirements of this subsection and is liable for the payment of premiums under section 9706(h)(3).
(D) Controlled group
For purposes of this subsection, the term "controlled group of corporations" has the meaning given such term by section 52(a).
(3) Requirements
A payment meets the requirements of this paragraph if—
(A) the amount of the payment is not less than the present value of the total premium liability under this chapter with respect to the Combined Fund of the assigned operators or related persons described in paragraph (1) or their assignees, as determined by the operator's or related person's enrolled actuary (as defined in section 7701(a)(35)) using actuarial methods and assumptions each of which is reasonable and which are reasonable in the aggregate, as determined by such enrolled actuary;
(B) such enrolled actuary files with the Secretary of Labor a signed actuarial report containing—
(i) the date of the actuarial valuation applicable to the report; and
(ii) a statement by the enrolled actuary signing the report that, to the best of the actuary's knowledge, the report is complete and accurate and that in the actuary's opinion the actuarial assumptions used are in the aggregate reasonably related to the experience of the operator and to reasonable expectations; and
(C) 90 calendar days have elapsed after the report required by subparagraph (B) is filed with the Secretary of Labor, and the Secretary of Labor has not notified the assigned operator in writing that the requirements of this paragraph have not been satisfied.
(4) Use of prepayment
The Combined Fund shall—
(A) establish and maintain an account for each assigned operator or related person by, or on whose behalf, a payment described in paragraph (3) was made,
(B) credit such account with such payment (and any earnings thereon), and
(C) use all amounts in such account exclusively to pay premiums that would (but for this subsection) be required to be paid by the assigned operator.
Upon termination of the obligations for the premium liability of any assigned operator or related person for which such account is maintained, all funds remaining in such account (and earnings thereon) shall be refunded to such person as may be designated by the common parent described in paragraph (1)(B).
(Added
Editorial Notes
References in Text
The Social Security Act, referred to in subsec. (b)(3), is act Aug. 14, 1935, ch. 531,
Amendments
2018—Subsec. (d)(2)(B).
2006—Subsec. (d).
Subsec. (e)(1).
Subsec. (e)(3)(A).
Subsec. (f)(2)(C).
Subsec. (j).
1994—Subsecs. (b)(2), (h).
Statutory Notes and Related Subsidiaries
Effective Date of 2006 Amendment
Effective Date of 1994 Amendment
Amendment by
1 So in original. Probably should be "Commissioner".
§9705. Transfers
(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
(1) In general
The Combined Fund shall include any amount transferred to the Fund under subsections (h) and (i) of section 402 of the Surface Mining Control and Reclamation Act of 1977 (
(2) Use of funds
Any amount transferred under paragraph (1) for any fiscal year shall be used to pay benefits and administrative costs of beneficiaries of the Combined Fund or for such other purposes as are specifically provided in the Act described in paragraph (1).
(Added
Editorial Notes
Amendments
2018—Subsec. (b)(1).
Subsec. (b)(2).
2006—Subsec. (b).
Subsec. (b)(1).
Subsec. (b)(2).
Statutory Notes and Related Subsidiaries
Effective Date of 2006 Amendment
Amendment by
§9706. Assignment of eligible beneficiaries
(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.
(h) Assignments as of October 1, 2007
(1) In general
Subject to the premium obligation set forth in paragraph (3), the Commissioner of Social Security shall—
(A) revoke all assignments to persons other than 1988 agreement operators for purposes of assessing premiums for plan years beginning on and after October 1, 2007; and
(B) make no further assignments to persons other than 1988 agreement operators, except that no individual who becomes an unassigned beneficiary by reason of subparagraph (A) may be assigned to a 1988 agreement operator.
(2) Reassignment upon purchase
This subsection shall not be construed to prohibit the reassignment under subsection (b)(2) of an eligible beneficiary.
(3) Liability of persons during three fiscal years beginning on and after October 1, 2007
In the case of each of the fiscal years beginning on October 1, 2007, 2008, and 2009, each person other than a 1988 agreement operator shall pay to the Combined Fund the following percentage of the amount of annual premiums that such person would otherwise be required to pay under section 9704(a), determined on the basis of assignments in effect without regard to the revocation of assignments under paragraph (1)(A):
(A) For the fiscal year beginning on October 1, 2007, 55 percent.
(B) For the fiscal year beginning on October 1, 2008, 40 percent.
(C) For the fiscal year beginning on October 1, 2009, 15 percent.
(Added
Editorial Notes
Amendments
2006—Subsec. (h).
1994—Subsecs. (a), (c) to (g).
Statutory Notes and Related Subsidiaries
Effective Date of 2006 Amendment
Amendment by
Effective Date of 1994 Amendment
Amendment by
PART III—ENFORCEMENT
§9707. Failure to pay premium
(a) Failures to pay
(1) Premiums for eligible beneficiaries
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.
(2) Contributions required under the mining laws
There is hereby imposed a penalty on the failure of any person to make a contribution required under section 402(h)(5)(B)(ii) of the Surface Mining Control and Reclamation Act of 1977 to a plan referred to in section 402(h)(2)(C) of such Act. For purposes of applying this section, each such required monthly contribution for the hours worked of any individual shall be treated as if it were a premium required to be paid under section 9704 with respect to an 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.
(Added
Editorial Notes
References in Text
Section 402 of the Surface Mining Control and Reclamation Act of 1977, referred to in subsec. (a)(2), is classified to
Amendments
2006—Subsec. (a).
1996—Subsec. (d)(1).
PART IV—OTHER PROVISIONS
§9708. Effect on pending claims or obligations
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.
(Added