Internal Revenue Code:Sec. 9711. Continued obligations of individual employer plans
From TaxAlmanac, A Free Online Resource
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Contents |
Location in Internal Revenue Code
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
Statute
Sec. 9711. Continued obligations of individual employer plans
(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.--
(1) In general.--Except as provided in paragraph (2), 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).
(2) Liability limited if security provided.--If--
(A) security meeting the requirements of paragraph
(3) is provided by or on behalf of--
(i) any last signatory operator which is an
assigned operator described in section 9704(j)(2),
or
(ii) any related person to any last
signatory operator described in clause (i), and
(B) the common parent of the controlled group of
corporations described in section 9704(j)(2)(B) is
jointly and severally liable for the provision of health
care under this section which, but for this paragraph,
would be required to be provided by the last signatory
operator or related person,
then, as of the date the security is provided, such common
parent (and no other person) shall be liable for the provision
of health care under this section which the last signatory
operator or related person would otherwise be required to
provide. Security may be provided under this paragraph without
regard to whether a payment was made under section 9704(j).
(3) Security.--Security meets the requirements of this
paragraph if--
(A) the security--
(i) is in the form of a bond, letter of
credit, or cash escrow,
(ii) is provided to the trustees of the 1992
UMWA Benefit Plan solely for the purpose of paying
premiums for beneficiaries who would be described
in section 9712(b)(2)(B) if the requirements of
this section were not met by the last signatory
operator, and
(iii) is in an amount equal to 1 year of
liability of the last signatory operator under
this section, determined by using the average cost
of such operator's liability during the prior 3
calendar years;
(B) the security is in addition to any other
security required under any other provision of this
title; and
(C) the security remains in place for 5 years.
(4) Refunds of security.--The remaining amount of any
security provided under this subsection (and earnings thereon)
shall be refunded to the last signatory operator as of the
earlier of--
(A) the termination of the obligations of the last
signatory operator under this section, or
(B) the end of the 5-year period described in
paragraph (4)(C).
(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.
Sources
(Added Pub. L. 102-486, title XIX, Sec. 19143(a), Oct. 24, 1992,
106 Stat. 3051.)
Miscellaneous
AMENDMENTS
2006 - Tax Relief and Health Care Act of 2006 (P.L. 109-432)
Subtitle B--Coal Industry Retiree Health Benefit Act
SEC. 211. CERTAIN RELATED PERSONS AND SUCCESSORS IN INTEREST RELIEVED OF
LIABILITY IF PREMIUMS PREPAID.
(b) Individual Employer Plans.--Section 9711(c) of the Internal
Revenue Code of 1986 <<NOTE: 26 USC 9711.>> (relating to joint and
several liability) is amended to read as follows:
``(c) Joint and Several Liability of Related Persons.--
``(1) In general.--Except as provided in paragraph (2), 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).
``(2) Liability limited if security provided.--If--
``(A) security meeting the requirements of paragraph
(3) is provided by or on behalf of--
``(i) any last signatory operator which is an
assigned operator described in section 9704(j)(2),
or
``(ii) any related person to any last
signatory operator described in clause (i), and
``(B) the common parent of the controlled group of
corporations described in section 9704(j)(2)(B) is
jointly and severally liable for the provision of health
care under this section which, but for this paragraph,
would be required to be provided by the last signatory
operator or related person,
then, as of the date the security is provided, such common
parent (and no other person) shall be liable for the provision
of health care under this section which the last signatory
operator or related person would otherwise be required to
provide. Security may be provided under this paragraph without
regard to whether a payment was made under section 9704(j).
``(3) Security.--Security meets the requirements of this
paragraph if--
``(A) the security--
``(i) is in the form of a bond, letter of
credit, or cash escrow,
``(ii) is provided to the trustees of the 1992
UMWA Benefit Plan solely for the purpose of paying
premiums for beneficiaries who would be described
in section 9712(b)(2)(B) if the requirements of
this section were not met by the last signatory
operator, and
``(iii) is in an amount equal to 1 year of
liability of the last signatory operator under
this section, determined by using the average cost
of such operator's liability during the prior 3
calendar years;
``(B) the security is in addition to any other
security required under any other provision of this
title; and
``(C) the security remains in place for 5 years.
``(4) Refunds of security.--The remaining amount of any
security provided under this subsection (and earnings thereon)
shall be refunded to the last signatory operator as of the
earlier of--
``(A) the termination of the obligations of the last
signatory operator under this section, or
``(B) the end of the 5-year period described in
paragraph (4)(C).''.
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 9712 of this title.
