Provides for a reduction in health benefit premiums to coal miners if there is a surplus in the Combined Benefit Fund.
Provides for the transfer of certain amounts of interest from the Abandoned Mine Reclamation Fund to the Combined Fund.
Reduces Abandoned Mine Reclamation Fund fees. Extends the Abandoned Mine Reclamation Fee program for an additional six years.
Authorizes appropriations for the transfer of $38 million from the 1950 United Mine Workers of America Pension Plan annually to the Combined Fund to cover any shortfall in the premium account of the Combined Fund.
[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2729 Introduced in Senate (IS)]
106th CONGRESS
2d Session
S. 2729
To amend the Internal Revenue Code of 1986 and the Surface Mining
Control and Reclamation Act of 1977 to restore stability and equity to
the financing of the United Mine Workers of America Combined Benefit
Fund by eliminating the liability of reachback operators, to provide
additional sources of revenue to the Fund, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 14, 2000
Mr. Conrad (for himself and Mr. Smith of Oregon) introduced the
following bill; which was read twice and referred to the Committee on
Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 and the Surface Mining
Control and Reclamation Act of 1977 to restore stability and equity to
the financing of the United Mine Workers of America Combined Benefit
Fund by eliminating the liability of reachback operators, to provide
additional sources of revenue to the Fund, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; AMENDMENTS OF 1986 CODE.
(a) Short Title.--This Act may be cited as the ``Combined Fund
Stability and Fairness Act''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
TITLE I--REACHBACK PROVISIONS
SEC. 101. REFORM OF REACHBACK PROVISIONS OF COAL INDUSTRY HEALTH
BENEFIT SYSTEM.
(a) Agreements Covered by Health Benefit System.--
(1) In general.--Section 9701(b)(1) (defining coal wage
agreement) is amended to read as follows:
``(1) Coal agreements.--
``(A) 1988 agreement.--The term `1988 agreement'
means the collective bargaining agreement between the
settlors which became effective on February 1, 1988.
``(B) Coal wage agreement.--The term `coal wage
agreement' means the 1988 agreement and any predecessor
to the 1988 agreement.''
(2) Conforming amendment.--Section 9701(b) (relating to
agreements) is amended by striking paragraph (3).
(b) Definitions Applicable to Operators.--
(1) Signatory operator.--Section 9701(c)(1) (defining
signatory operator) is amended to read as follows:
``(1) Signatory operator.--The term `signatory operator'
means a 1988 agreement operator.''
(2) 1988 agreement operator.--Section 9701(c)(3) (defining
1988 agreement operator) is amended to read as follows:
``(3) 1988 agreement operator.--The term `1988 agreement
operator' means--
``(A) an operator which was a signatory to the 1988
agreement, or
``(B) a person in business which, during the term
of the 1988 agreement, was a signatory to an agreement
(other than the National Coal Mine Construction
Agreement or the Coal Haulers' Agreement) containing
pension and health care contribution and benefit
provisions which are the same as those contained in the
1988 agreement.
Such term shall not include any operator who was assessed, and
paid the full amount of, contractual withdrawal liability to
the 1950 UMWA Benefit Plan, the 1974 UMWA Benefit Plan, or the
Combined Fund.''
(3) Conforming amendments.--
(A) Section 9711(a) is amended by striking
``maintained pursuant to a 1978 or subsequent coal wage
agreement''.
(B) Section 9711(b)(1) is amended by striking
``pursuant to a 1978 or subsequent coal wage
agreement''.
(c) Modifications To Reflect Reachback Reforms.--
(1) Board of trustees of combined fund.--
(A) In general.--Section 9702(b)(1) is amended--
(i) by striking ``one individual who
represents'' in subparagraph (A) and inserting
``two individuals who represent'',
(ii) by striking subparagraph (B) and
redesignating subparagraphs (C) and (D) as
subparagraphs (B) and (C), respectively, and
(iii) by striking ``(A), (B), and (C)'' in
subparagraph (C) (as so redesignated) and
inserting ``(A) and (B)''.
(B) Conforming amendment.--Section 9702(b)(3) is
amended to read as follows:
``(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) Transition rule.--Any trustee serving on the
date of the enactment of this Act who was appointed to
serve under section 9702(b)(1)(B) of the Internal
Revenue Code of 1986 (as in effect before the
amendments made by this paragraph) shall continue to
serve until a successor is appointed under section
9702(b)(1)(A) of such Code (as in effect after such
amendments).
(2) Assignment of beneficiaries.--Section 9706 (relating to
assignment of eligible beneficiaries) is amended by adding at
the end the following:
``(h) Assignment as of October 1, 2000.--
``(1) In general.--Effective October 1, 2000, the
Commissioner of Social Security shall--
``(A) revoke all assignments to persons other than
1988 agreement operators for purposes of assessing
premiums for periods after September 30, 2000,
``(B) make no further assignments to persons other
than 1988 agreement operators, and
``(C) terminate all unpaid liabilities of persons
other than 1988 agreement operators with respect to
eligible beneficiaries whose assignment to such persons
is pending on October 1, 2000.
``(2) Reassignment upon purchase.--This subsection shall
not be construed to prohibit the reassignment under subsection
(b)(2) of an eligible beneficiary.''
(3) Liability for 1992 plan.--
(A) In general.--Section 9712(d) (relating to
guarantee of benefits) is amended by striking paragraph
(3) and by redesignating paragraphs (4), (5), and (6)
as paragraphs (3), (4), and (5), respectively.
(B) Conforming amendment.--Section 9712(d)(3) (as
redesignated under subparagraph (A)) is amended by
striking ``or last signatory operator described in
paragraph (3)''.
(C) Effective date.--The amendments made by this
paragraph shall apply to premiums assessed for periods
after September 30, 2000, except that a person other
than a 1988 agreement operator shall not be liable for
any unpaid premium under section 9712(d) of the
Internal Revenue Code of 1986 as of such date if
liability for such premium had not been assessed or was
being contested on such date.
TITLE II--FINANCING PROVISIONS
Subtitle A--Premiums
SEC. 201. REDUCTION IN ANNUAL PREMIUMS TO COAL MINERS COMBINED FUND IF
SURPLUS EXISTS.
(a) In General.--Part II of subchapter B of chapter 99 (relating to
financing of Combined Benefit Fund) is amended by inserting after
section 9704 the following new section:
``SEC. 9704A. REDUCTIONS IN HEALTH BENEFIT PREMIUM IF SURPLUS EXISTS.
``(a) General Rule.--If this section applies to any plan year, the
per beneficiary premium used for purposes of computing the health
benefit premium under section 9704(b) for the plan year shall be the
reduced per beneficiary premium determined under subsection (c).
``(b) Years to Which Section Applies.--
``(1) In general.--This section applies to any plan year
beginning after September 30, 2000, if the trustees determine
that the Combined Fund has an excess reserve for the plan year.
``(2) Excess reserve.--For purposes of this section--
``(A) In general.--The term `excess reserve' means,
with respect to any plan year, the excess (if any) of--
``(i) the projected net assets as of the
close of the test period for the plan year,
over
``(ii) the projected 3-month asset reserve
as of such time.
``(B) Projected net assets.--For purposes of
subparagraph (A)(i), the projected net assets shall be
the amount of the net assets which the trustees
determine will be available at the end of the test
period for projected fund benefits. Such determination
shall be made in the same manner used by the Combined
Fund to calculate net assets available for projected
fund benefits in the Statement of Net Assets (Deficits)
Available for Fund Benefits for purposes of the monthly
financial statements of the Combined Fund for the plan
year beginning October 1, 1999.
``(C) Projected 3-month asset reserve.--For
purposes of subparagraph (A)(ii), the projected 3-month
asset reserve is an amount equal to 25 percent of the
projected expenses (including administrative expenses)
from the health benefit premium account and unassigned
beneficiaries premium account for the plan year
immediately following the test period. The
determination of such amount shall be based on the 10-
year forecast of the projected net assets and cash
balance of the Combined Fund prepared annually by an
actuary retained by the Combined Fund.
``(D) Test period.--For purposes of this section,
the term `test period' means, with respect to any plan
year, the plan year and the following plan year.
``(c) Reduced Per Beneficiary Premium.--For purposes of this
section, the reduced per beneficiary premium for any plan year to which
this section applies is the per beneficiary premium determined under
section 9704(b)(2) without regard to this section, reduced (but not
below zero) by--
``(1) the excess reserve for the plan year, divided by
``(2) the total number of eligible beneficiaries which are
assigned to assigned operators under section 9706 as of the
close of the preceding plan year.
``(d) Termination of Premium Reduction.--If, on any day during a
plan year to which this section applies, the Combined Fund has net
assets available for projected fund benefits (determined in the same
manner as projected net assets under subsection (b)(2)(B)) in an amount
less than the projected 3-month asset reserve determined under
subsection (b)(2)(C) for the plan year--
``(1) this section shall not apply to months in the plan
year beginning after such day, and
``(2) the monthly installment under section 9704(g)(1) for
such months shall be equal to the amount which would have been
determined if the health benefits premium under section 9704(b)
had not been reduced under this section for the plan year.''
(b) Conforming Amendments.--
(1) Section 9704(a) (relating to annual premiums) is
amended by striking ``Each'' and inserting ``Subject to section
9704A, each''.
(2) The table of sections for part II of subchapter B of
chapter 99 is amended by inserting after the item relating to
section 9704 the following new item:
``Sec. 9704A. Reductions in health benefit premium if surplus
exists.''
(c) Effective Date.--The amendments made by this subsection shall
apply to plan years of the Combined Fund beginning after September 30,
2000.
SEC. 202. ELECTION TO PREFUND REQUIRED CONTRIBUTIONS.
(a) Combined Fund.--Section 9704(g) (relating to payment of
premiums) is amended by redesignating paragraph (2) as paragraph (3)
and by inserting after paragraph (1) the following:
``(2) Election to prefund.--
``(A) In general.--An assigned operator shall be
entitled to prefund its obligations to the Combined
Fund by depositing into an irrevocable trust dedicated
solely to the payment of such obligations an amount
which the board of trustees determines, on the basis of
reasonable actuarial assumptions, to be equal to the
present value of the operator's present and future
obligations to the Combined Fund.
``(B) Effects on liability.--If an assigned
operator prefunds its obligations under this
paragraph--
``(i) the assigned operator (and any
successor) shall continue to remain liable for
such obligations if the amount deposited is
insufficient, but
``(ii) any related person to such operator
(or successor) shall be relieved of any
liability for such obligations.''
(b) 1992 Fund.--Section 9712(d) (relating to guarantee of
benefits), as amended by section 101, is amended by adding at the end
the following:
``(6) Election to prefund.--
``(A) In general.--A 1988 last signatory operator
shall be entitled to prefund its obligations to the
1992 UMWA Benefit Plan by depositing into an
irrevocable trust dedicated solely to the payment of
such obligations an amount which the board of trustees
determines, on the basis of reasonable actuarial
assumptions, to be equal to the present value of the
operator's present and future obligations to such plan.
``(B) Effects on liability.--If a 1988 last
signatory operator prefunds its obligations under this
paragraph--
``(i) the operator (and any successor)
shall continue to remain liable for such
obligations if the amount deposited is
insufficient, but
``(ii) any related person to such operator
(or successor) shall be relieved of any
liability for such obligations.''
SEC. 203. FIRST YEAR PAYMENTS OF 1988 OPERATORS.
So much of section 9704(i)(1)(D) as precedes clause (ii) is amended
to read as follows:
``(D) Premium reductions and refunds.--
``(i) 1st year payments.--In the case of a
1988 agreement operator making payments under
subparagraph (A)--
``(I) 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, or
``(II) if the amount so paid
exceeds the operator's liability under
subsection (a), the excess shall be
refunded to the operator.''
Subtitle B--Transfers From Abandoned Mine Reclamation Fund
SEC. 211. TRANSFER OF INTEREST FROM ABANDONED MINE RECLAMATION FUND TO
COMBINED FUND.
(a) In General.--Section 402(h)(2) of the Surface Mining Control
and Reclamation Act of 1977 (30 U.S.C. 1232(h)(2)) is amended to read
as follows:
``(2)(A) Except as provided in subparagraph (B), the
Secretary shall transfer from the fund to the United Mine
Workers of America Combined Benefit Fund established under
section 9702 of the Internal Revenue Code of 1986 for any
fiscal year the amount of interest which the Secretary
estimates will be earned and paid to the fund during the fiscal
year.
``(B) The Secretary shall increase the amount transferred
under subparagraph (A) for fiscal year 2001 by the excess of--
``(i) the total amount of interest earned and paid
to the fund after September 30, 1992, and before
October 1, 2000, over
``(ii) the total amount transferred to the Combined
Fund under this subsection for fiscal years beginning
before October 1, 2000.''
(b) Conforming Amendments.--Section 204(h) of such Act (30 U.S.C.
1232(h)) is amended by striking paragraph (3) and by redesignating
paragraph (4) as paragraph (3).
(c) Effective Date.--The amendments made by this section shall
apply to fiscal years beginning after September 30, 2000.
SEC. 212. MODIFICATIONS OF ABANDONED MINE RECLAMATION FEE PROGRAM.
(a) Reductions in Reclamation Fees.--Section 402(a) of the Surface
Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232(a)) is
amended--
(1) by striking ``35 cents'' and inserting ``20 cents'',
(2) by striking ``15 cents'' and inserting ``5 cents'', and
(3) by striking ``10 cents'' and inserting ``5 cents''.
(b) Extension of Fee Program.--Section 402(b) of such Act (30
U.S.C. 1232(b)) is amended by striking ``2004'' and inserting ``2010''.
(c) Effective Date.--The amendments made by subsection (a) shall
apply to fiscal years beginning after September 30, 2000.
SEC. 213. USE OF FUNDS TRANSFERRED FROM ABANDONED MINE RECLAMATION
FUND.
(a) In General.--Section 9705(b)(2) of the Internal Revenue Code of
1986 (relating to use of funds) is amended to read as follows:
``(2) Use of funds.--The amount transferred under paragraph
(1) for any fiscal year shall be used--
``(A) first, to refund to an assigned operator (and
any related person to such operator) an amount equal to
the sum of--
``(i) any amount paid by such operator or
person to the Combined Fund (and not previously
refunded) solely by reason of the operator
having been a signatory to a pre-1974 coal wage
agreement, plus
``(ii) interest on the amount under clause
(i) at the overpayment rate established under
section 6621 for the period from the payment of
such amount to the refund under this
subparagraph,
``(B) second, to make any refund required under
section 9704(i)(1)(D)(i)(II),
``(C) third, to proportionately reduce the
unassigned beneficiary premium under section 9704(a)(3)
of each assigned operator for the plan year in which
transferred, and
``(D) last, to pay the amount of any other
obligation occurring in the Combined Fund.''
(b) Effective Date.--The amendment made by this subsection shall
apply to fiscal years beginning after September 30, 2000.
Subtitle C--Authorization
SEC. 221. AUTHORIZATION OF TRANSFER OF FUNDS TO COMBINED BENEFIT FUND.
Section 9705 (relating to transfers to the Combined Benefit Fund)
is amended by adding at the end the following:
``(c) Authorization of Appropriations.--
``(1) In general.--There is authorized to be appropriated
$38,000,000 for each fiscal year beginning after September 30,
2000.
``(2) Use of funds.--Any amounts transferred to the
Combined Fund under paragraph (1) shall be available, without
fiscal year limitation, to cover any shortfall in any premium
account established under section 9704(e).
``(3) Transfers.--
``(A) In general.--The Secretary shall transfer
amounts appropriated under paragraph (1) on October 1
of each fiscal year.
``(B) Excess amounts.--If the Secretary, after
examining the audit of the Combined Fund by the
Comptroller General of the United States, determines
that the amount transferred for any fiscal year exceeds
the amount required to cover shortfalls for that year,
the Secretary shall notify the Committees on
Appropriations of the House of Representatives and the
Senate and the authorization of appropriations for the
first fiscal year after the determination shall be
reduced by the amount of the excess.''
SEC. 222. ANNUAL AUDIT.
Section 9702 (relating to establishment of the Combined Fund) is
amended by adding at the end the following:
``(d) Annual Audit.--
``(1) Audit.--The Comptroller General of the United States
shall conduct an annual audit of the Combined Fund. Such audit
shall include--
``(A) a review of the progress the Combined Fund is
making toward a managed care system as required under
this subchapter, and
``(B) a review of the use of, and necessity for,
amounts transferred to the Combined Fund under section
9705(c).
``(2) Report.--The Comptroller General shall report the
results of any audit under paragraph (1) to the Secretary of
the Treasury and to the appropriate committees of Congress,
including its recommendations (if any) as to any administrative
savings which may be achieved without reducing the effective
level of benefits under section 9703.''
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S5113-5114)
Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S5114-5115)
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