PRIA, Government Policy, Made Personal

Summary

The board of trustees of the 1950 UMWA Pension Plan must set aside $210,000,000 right after the law is passed and then send three payments of $70,000,000 to the Combined Fund on February 1, 1993, October 1, 1993, and October 1, 1994. Any interest earned on the set-aside money goes back into the 1950 plan until the transfers happen. The first $70,000,000 lowers each assigned operator’s premium for the plan year that begins February 1, 1993. The later transfers lower the unassigned beneficiary premium and the death benefit premium for each assigned operator for the year of the transfer and later years while the money lasts. Those funds cannot be used to pay amounts that 1988 agreement operators must pay under section 9704(i)(1)(B). The Combined Fund will also include amounts moved in under subsections (h) and (i) of section 402 of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232). Money transferred as above gets used to pay Combined Fund benefits and administrative costs or other uses allowed by that Act. The transfers are not tax-deductible, but they do not hurt the tax treatment of employer contributions to the listed UMWA plans, are not treated as employer reversions under section 4980, are not income to employers who run the 1950 plan, and do not create legal or tax penalties for plan officials, trustees, employers, or related parties.

Title 26, §9705

Internal Revenue Code, Source: USLM XML via OLRC

(a)Transfer of assets from 1950 UMWA Pension Plan

(1)In general

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)Reservation

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)Use of funds

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.

Such funds may not be used to pay any amounts required to be paid by the 1988 agreement operators under section 9704(i)(1)(B).

(4)Tax treatment; validity of transfer

(A)No deduction

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)Other tax provisions

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)Treatment of transfer

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)Transfers

(1)In general

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)Use of funds

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