H.R. 1370 (104th): To amend the Internal Revenue Code of 1986 to reduce mandatory premiums to the United Mine Workers ...

...of America Combined Benefit Fund by certain surplus amounts in the Fund, and for other purposes.

104th Congress, 1995–1996. Text as of Mar 30, 1995 (Introduced).

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HR 1370 IH

104th CONGRESS

1st Session

H. R. 1370

To amend the Internal Revenue Code of 1986 to reduce mandatory premiums to the United Mine Workers of America Combined Benefit Fund by certain surplus amounts in the Fund, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

March 30, 1995

Mr. MYERS of Indiana (for himself, Mr. HANCOCK, Mr. ARMEY, Mr. THOMAS, Mr. SHAW, Mrs. JOHNSON of Connecticut, Mr. BUNNING of Kentucky, Mr. HOUGHTON, Mr. HERGER, Mr. MCCRERY, Mr. CAMP, Mr. RAMSTAD, Mr. ZIMMER, Mr. SAM JOHNSON of Texas, Ms. DUNN of Washington, Mr. COLLINS of Georgia, Mr. PORTMAN, Mr. ENGLISH of Pennsylvania, Mr. ENSIGN, Mr. CHRISTENSEN, Mrs. KENNELLY, Mr. PAYNE of Virginia, and Mr. POMEROY) introduced the following bill; which was referred to the Committee on Ways and Means


A BILL

To amend the Internal Revenue Code of 1986 to reduce mandatory premiums to the United Mine Workers of America Combined Benefit Fund by certain surplus amounts in 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. REDUCTION IN REQUIRED PREMIUMS TO COMBINED FUND BY EXCESS SURPLUS IN FUND.

    (a) IN GENERAL- Paragraph (3) of section 9704(e) of the Internal Revenue Code of 1986 (relating to shortfalls and surpluses) is amended to read as follows:

      ‘(3) SHORTFALLS AND SURPLUSES-

        ‘(A) DETERMINATIONS-

          ‘(i) IN GENERAL- Subject to the provisions of clause (iv), the trustees of the Combined Fund shall, as of the close of each plan year beginning on or after October 1, 1993--

            ‘(I) determine any shortfall or surplus in any premium account established under paragraph (1) and, to the maximum extent possible, reduce or eliminate any shortfall in any such account by transferring amounts to it from any surplus in any other such account, and

            ‘(II) determine, after any transfers under subclause (I), the aggregate shortfall or surplus in the Combined Fund, taking into account all receipts of any kind during the plan year from all sources.

          ‘(ii) DETERMINATIONS MADE ON CASH FLOW BASIS-

            ‘(I) IN GENERAL- Subject to the provisions of subclause (II) and clause (iii), any determination under clause (i) for any plan year shall be determined under the cash receipts and disbursements method of accounting, taking into account only receipts and disbursements for the plan year.

            ‘(II) CERTAIN PRIOR YEAR SURPLUSES- For purposes of applying subclause (I) for any plan year, any surplus determined under subparagraph (A)(i)(II) as of the close of the preceding plan year, including any portion used as provided in subparagraph (B), shall be treated as received in the Combined Fund as of the beginning of the plan year.

          ‘(iii) DISREGARD OF TRANSFERRED AMOUNTS- For purposes of this subparagraph--

            ‘(I) no amount transferred to the Combined Fund under section 9705, and no disbursements made from such amount, shall be taken into account in making any determination under subparagraph (A) for the plan year of the transfer or any subsequent plan year, and

            ‘(II) any amount in a premium account which was transferred to the Combined Fund under section 9705 may not be transferred to another account under clause (i)(I).

          ‘(iv) SPECIAL RULE FOR 1994- In the case of the plan year ending September 30, 1994, the determinations under subparagraph (A) shall be made for the period beginning February 1, 1993, and ending September 30, 1994.

        ‘(B) TREATMENT OF SURPLUS-

          ‘(i) NONPREMIUM ADJUSTMENTS- Any surplus determined under subparagraph (A)(i)(II) for any plan year shall be used first for purposes of the carryover under section 9703(b)(2)(C), but only to the extent the amount of such carryover does not exceed 10 percent of the benefits and administrative costs paid by the Combined Fund during the plan year (determined without regard to benefits paid from transfers under section 9705).

          ‘(ii) PREMIUM ADJUSTMENTS- The annual premium for any plan year for each assigned operator which is not a 1988 agreement operator shall be reduced by an amount which bears the same ratio to the surplus determined under subparagraph (A)(i)(II) for the preceding plan year (reduced as provided under clause (i)) as--

            ‘(I) such assigned operator’s applicable percentage (expressed as a whole number), bears to

            ‘(II) the sum of the applicable percentages (expressed as whole numbers) of all assigned operators which are not 1988 agreement operators.

          The reduction in any annual premium under this clause shall be allocated to the premium accounts established under paragraph (1) in the same manner as the annual premium would have been allocated without regard to this clause, and in the case of assigned operators which sought protection under title 11 of the United States Code before October 24, 1992, without regard to section 9706(b)(1)(A). An assigned operator which is delinquent in paying any of the premiums assessed against the operator before the date of the enactment of this sentence (or assessed at any time after such date) shall not be eligible for a reduction under this clause unless the operator satisfies the delinquency. For purposes of the preceding sentence, an assigned operator shall not be treated as delinquent with respect to any amount held in escrow, or subject to court-approved security, pending final determination of assessment.

        ‘(C) SHORTFALLS- If a shortfall is determined under subparagraph (A)(i)(II) for any plan year, the annual premium for each assigned operator shall be increased by an amount equal to such assigned operator’s applicable percentage of the shortfall. Any increase under this subparagraph shall be allocated to each premium account with a shortfall.

        ‘(D) NO AUTHORITY FOR INCREASE- Nothing in this paragraph shall be construed to allow expenditures for health care benefits in any plan year in excess of the limit under section 9703(b)(2).

        ‘(E) SPECIAL RULE FOR 1995- In the case of the plan year beginning October 1, 1994, the adjustment under subparagraph (B) shall be made effective as of such date and any assigned operator which receives a reduction in premiums under subparagraph (B) shall be entitled to a credit to the extent it has paid, taking the reduction into account, excessive premiums during plan year.’

    (b) AMOUNT OF PER BENEFICIARY PREMIUM- Paragraph (2) of section 9704(b) of the Internal Revenue Code of 1986 (defining per beneficiary premium) is amended--

      (1) by striking subparagraph (A) and inserting:

        ‘(A) $2,116.67, plus’, and

      (2) by striking ‘the amount determined under subparagraph (A)’ in subparagraph (B) and inserting ‘$2,116.67,’.

    (c) CONFORMING AMENDMENT- Clause (ii) of section 9703(b)(2)(A) of the Internal Revenue Code of 1986 is amended by inserting ‘(without regard to any reduction under section 9704(e)(3)(B)(ii))’ after ‘for the plan year’.

SEC. 2. DISCLOSURE REQUIREMENTS.

    (a) IN GENERAL- Section 9704(h) of the Internal Revenue Code of 1986 (relating to information) is amended by adding at the end the following new paragraph:

      ‘(2) INFORMATION TO CONTRIBUTORS-

        ‘(A) IN GENERAL- The trustees of the Combined Fund shall, within 30 days of a written request, make available to any person required to make contributions to the Combined Fund or their agent--

          ‘(i) all documents which reflect its financial and operational status, including documents under which it is operated, and

          ‘(ii) all documents prepared at the request of the trustees or staff of the Combined Fund which form the basis for any of its actions or reports, including the eligibility of participants in predecessor plans.

        ‘(B) FEES- The trustees may charge reasonable fees (not in excess of actual expenses) for providing documents under this paragraph.’

    (b) CONFORMING AMENDMENT- Section 9704(h) of the Internal Revenue Code of 1986 is amended by striking ‘(h) INFORMATION- The’ and inserting:

    ‘(h) INFORMATION-

      ‘(1) INFORMATION TO SECRETARY- The’.