§9705 — Title 26 Internal Revenue Code | U.S. Code

Summary

To help fund the Combined Fund, which pays benefits for retired coal miners, the trustees of the 1950 UMWA Pension Plan were required to set aside $210,000,000 and transfer it in three payments of $70,000,000 each, on February 1, 1993, October 1, 1993, and October 1, 1994. The money was used to lower the premiums coal companies owed the Fund. Those transfers could not be deducted, but they did not count as taxable income to employers, did not count as a pension plan reversion, and did not affect the deductibility of other contributions, and they could not trigger any legal liability or penalties. The Combined Fund also receives money transferred under the Surface Mining Control and Reclamation Act of 1977, which must be used to pay beneficiaries' benefits and administrative costs or other purposes that law spells out.

Title 26, §9705

Internal Revenue Code — Source: USLM XML via OLRC

(a)(1)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)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)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.

(4)(A)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)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)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)(1)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 (30 U.S.C. 1232).

(2)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).

Notes & Related Subsidiaries

Editorial Notes

Amendments

2018—Subsec. (b)(1). Pub. L. 115–141, § 401(a)(345), substituted “1232” for “1232(h)”. Subsec. (b)(2). Pub. L. 115–141, § 401(a)(346), substituted “Act” for “Acts”. 2006—Subsec. (b). Pub. L. 109–432, § 212(a)(1)(C), struck out “from abandoned mine reclamation fund” after “Transfers” in heading. Subsec. (b)(1). Pub. L. 109–432, § 212(a)(1)(A), substituted “subsections (h) and (i) of section 402” for “section 402(h)”. Subsec. (b)(2). Pub. L. 109–432, § 212(a)(1)(B), reenacted heading without change and amended text of par. (2) generally. Prior to amendment, text read as follows: “Any amount transferred under paragraph (1) for any fiscal year shall be used to proportionately reduce the unassigned beneficiary premium under section 9704(a)(3) of each assigned operator for the plan year in which transferred.”

Statutory Notes and Related Subsidiaries

Effective Date

of 2006 AmendmentAmendment by Pub. L. 109–432 applicable to plan years of the Combined Fund beginning after Sept. 30, 2006, see section 212(a)(4) of Pub. L. 109–432, set out as a note under section 9704 of this title.

§9705 Transfers