§9701 — Title 26 Internal Revenue Code | U.S. Code

Summary

These definitions control the chapter that funds health benefits for retired coal miners. They describe the United Mine Workers of America (UMWA) benefit and pension plans — the 1950 plans, which mostly cover miners who retired before 1976, and the 1974 plans, which mostly cover those who retired in 1976 or later — plus the Combined Fund that merged the benefit plans and the separate 1992 UMWA Benefit Plan. A "coal wage agreement" is the National Bituminous Coal Wage Agreement or any similar contract between a coal employer and the UMWA that promised retiree health benefits or plan contributions. The definitions also say which companies are on the hook. A "signatory operator" is a company that signed a coal wage agreement, and a "last signatory operator" is a retiree's most recent coal industry employer that signed one. Companies related to a signatory operator — through a controlled group, common control, or certain partnerships or joint ventures — can share its responsibility, with relationships measured as of July 20, 1992. A company counts as still in business if it earns revenue from any business activity, even outside coal, and a buyer that pays fair market value in an arm's-length sale is generally not treated as a successor in interest.

Title 26, §9701

Internal Revenue Code — Source: USLM XML via OLRC

(a)For purposes of this chapter—

(1)(A)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)The term “1950 UMWA Benefit Plan” means a UMWA Benefit Plan, participation in which is substantially limited to individuals who retired before 1976.

(C)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)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)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)The term “1992 UMWA Benefit Plan” means the plan referred to in section 9712.

(5)The term “Combined Fund” means the United Mine Workers of America Combined Benefit Fund established under section 9702.

(b)For purposes of this section—

(1)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)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)The term “National Bituminous Coal Wage Agreement” means a collective bargaining agreement negotiated by the BCOA and the United Mine Workers of America.

(c)For purposes of this section—

(1)The term “signatory operator” means a person which is or was a signatory to a coal wage agreement.

(2)(A)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.

(B)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)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)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)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)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)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.

(8)(A)The term “successor in interest” shall not include any person who—

(i)is an unrelated person to an eligible seller described in subparagraph (C); and

(ii)purchases for fair market value assets, or all of the stock, of a related person to such seller, in a bona fide, arm’s-length sale.

(B)The term “unrelated person” means a purchaser who does not bear a relationship to the eligible seller described in section 267(b).

(C)For purposes of this paragraph, the term “eligible seller” means an assigned operator described in section 9704(j)(2) or a related person to such assigned operator.

(d)For purposes of this chapter, the term “enactment date” means the date of the enactment of this chapter.

Notes & Related Subsidiaries

Editorial Notes

References in Text

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.

Amendments

2018—Subsec. (a)(4). Pub. L. 115–141 substituted “section 9712” for “section 9713A”. 2006—Subsec. (c)(8). Pub. L. 109–432 added par. (8).

Statutory Notes and Related Subsidiaries

Effective Date

of 2006 Amendment Pub. L. 109–432, div. C, title II, § 211(e), Dec. 20, 2006, 120 Stat. 3023, provided that: “The

Amendments

made by this section [amending this section and section 9704, 9711, and 9712 of this title] shall take effect on the date of the enactment of this Act [Dec. 20, 2006], except that the amendment made by subsection (d) [amending this section] shall apply to transactions after the date of the enactment of this Act.” Findings and Declaration of Policy Pub. L. 102–486, title XIX, § 19142, Oct. 24, 1992, 106 Stat. 3037, 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 (§§ 19141–19143) of title XIX of Pub. L. 102–486, enacting this subtitle, amending section 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.”

§9701 Definitions of General Applicability

Summary

Title 26, §9701

Notes & Related Subsidiaries

Editorial Notes

References in Text

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Amendments

Citations & Metadata