Title 26, Internal Revenue CodeRelease 119-110
§9706 Assignment of Eligible Beneficiaries
Title 26 › Subtitle J — Coal Industry Health Benefits › CHAPTER 99 — COAL INDUSTRY HEALTH BENEFITS › Subchapter B — Combined Benefit Fund › PART II — FINANCING › § 9706
Summary
The Social Security Commissioner must assign each eligible retired coal worker to a coal company by October 1, 1993. The assignment follows a set order based on which company last employed the worker and which companies signed the 1978 coal wage agreement. Work by related companies counts together. Work for companies that are out of business or for periods when a company was not a signatory does not count. If an assigned company is bought, the buyer can take over the assignment, but the original company (and its related persons) still guarantees the benefits. The 1950 and 1974 UMWA Benefit Plans must give the Commissioner a list of eligible beneficiaries (including certain deceased beneficiaries) and any known employer names by the later of October 1, 1992, or the 20th day after the law was passed. Federal agencies and the named pension and benefit trustees must help the Commissioner find needed information, unless national security or confidential census rules block sharing. The Commissioner must tell the Combined Fund trustees and each assigned company who was assigned and why. An assigned company can ask for work-history details within 30 days and can ask for a review within 30 days after getting that information. If the Commissioner finds an assignment was wrong, premiums already paid must be reduced or repaid and the worker may be reassigned; if not, the company is told. The Commissioner’s decisions are final, but companies must keep paying premiums while reviews or court cases happen, and private lawsuits are still allowed. Shared information must stay private and improper disclosure can bring penalties under section 6103. For plan years starting October 1, 2007 and after, assignments to anyone other than 1988 agreement operators are revoked for premium purposes, and no new such assignments are made; however, non‑1988 operators still owe 55% (FY 2007), 40% (FY 2008), and 15% (FY 2009) of the premiums they would have paid without the revocation.
Full Legal Text
Title 26, §9706
Internal Revenue Code, Source: USLM XML via OLRC
(a)In general
For purposes of this chapter, the Commissioner of Social Security shall, before October 1, 1993, assign each coal industry retiree who is an eligible beneficiary to a signatory operator which (or any related person with respect to which) remains in business in the following order:
(1)First, to the signatory operator which—
(A)was a signatory to the 1978 coal wage agreement or any subsequent coal wage agreement, and
(B)was the most recent signatory operator to employ the coal industry retiree in the coal industry for at least 2 years.
(2)Second, if the retiree is not assigned under paragraph (1), to the signatory operator which—
(A)was a signatory to the 1978 coal wage agreement or any subsequent coal wage agreement, and
(B)was the most recent signatory operator to employ the coal industry retiree in the coal industry.
(3)Third, if the retiree is not assigned under paragraph (1) or (2), to the signatory operator which employed the coal industry retiree in the coal industry for a longer period of time than any other signatory operator prior to the effective date of the 1978 coal wage agreement.
(b)Rules relating to employment and reassignment upon purchase
For purposes of subsection (a)—
(1)Aggregation rules
(A)Related person
Any employment of a coal industry retiree in the coal industry by a signatory operator shall be treated as employment by any related persons to such operator.
(B)Certain employment disregarded
Employment with—
(i)a person which is (and all related persons with respect to which are) no longer in business, or
(ii)a person during a period during which such person was not a signatory to a coal wage agreement,
shall not be taken into account.
(2)Reassignment upon purchase
If a person becomes a successor of an assigned operator after the enactment date, the assigned operator may transfer the assignment of an eligible beneficiary under subsection (a) to such successor, and such successor shall be treated as the assigned operator with respect to such eligible beneficiary for purposes of this chapter. Notwithstanding the preceding sentence, the assigned operator transferring such assignment (and any related person) shall remain the guarantor of the benefits provided to the eligible beneficiary under this chapter. An assigned operator shall notify the trustees of the Combined Fund of any transfer described in this paragraph.
(c)Identification of eligible beneficiaries
The 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan shall, by the later of October 1, 1992, or the twentieth day after the enactment date, provide to the Commissioner of Social Security a list of the names and social security account numbers of each eligible beneficiary, including each deceased eligible beneficiary if any other individual is an eligible beneficiary by reason of a relationship to such deceased eligible beneficiary. In addition, the plans shall provide, where ascertainable from plan records, the names of all persons described in subsection (a) with respect to any eligible beneficiary or deceased eligible beneficiary.
(d)Cooperation by other agencies and persons
(1)Cooperation
The head of any department, agency, or instrumentality of the United States shall cooperate fully and promptly with the Commissioner of Social Security in providing information which will enable the Commissioner to carry out his responsibilities under this section.
(2)Providing of information
(A)In general
Notwithstanding any other provision of law, including section 6103, the head of any other agency, department, or instrumentality shall, upon receiving a written request from the Commissioner of Social Security in connection with this section, cause a search to be made of the files and records maintained by such agency, department, or instrumentality with a view to determining whether the information requested is contained in such files or records. The Commissioner shall be advised whether the search disclosed the information requested, and, if so, such information shall be promptly transmitted to the Commissioner, except that if the disclosure of any requested information would contravene national policy or security interests of the United States, or the confidentiality of census data, the information shall not be transmitted and the Commissioner shall be so advised.
(B)Limitation
Any information provided under subparagraph (A) shall be limited to information necessary for the Commissioner to carry out his duties under this section.
(3)Trustees
The trustees of the Combined Fund, the 1950 UMWA Benefit Plan, the 1974 UMWA Benefit Plan, the 1950 UMWA Pension Plan, and the 1974 UMWA Pension Plan shall fully and promptly cooperate with the Commissioner in furnishing, or assisting the Commissioner to obtain, any information the Commissioner needs to carry out the Commissioner’s responsibilities under this section.
(e)Notice by Commissioner
(1)Notice to Fund
The Commissioner of Social Security shall advise the trustees of the Combined Fund of the name of each person identified under this section as an assigned operator, and the names and social security account numbers of eligible beneficiaries with respect to whom he is identified.
(2)Other notice
The Commissioner of Social Security shall notify each assigned operator of the names and social security account numbers of eligible beneficiaries who have been assigned to such person under this section and a brief summary of the facts related to the basis for such assignments.
(f)Reconsideration by Commissioner
(1)In general
Any assigned operator receiving a notice under subsection (e)(2) with respect to an eligible beneficiary may, within 30 days of receipt of such notice, request from the Commissioner of Social Security detailed information as to the work history of the beneficiary and the basis of the assignment.
(2)Review
An assigned operator may, within 30 days of receipt of the information under paragraph (1), request review of the assignment. The Commissioner of Social Security shall conduct such review if the Commissioner finds the operator provided evidence with the request constituting a prima facie case of error.
(3)Results of review
(A)Error (B) No error
If the Commissioner of Social Security determines under a review under paragraph (2) that an assignment was in error— (i)
(ii)the Commissioner shall review the beneficiary’s record for reassignment under subsection (a).
(4)Determinations
Any determination by the Commissioner of Social Security under paragraph (2) or (3) shall be final.
(5)Payment pending review
An assigned operator shall pay the premiums under section 9704 pending review by the Commissioner of Social Security or by a court under this subsection.
(6)Private actions
Nothing in this section shall preclude the right of any person to bring a separate civil action against another person for responsibility for assigned premiums, notwithstanding any prior decision by the Commissioner.
(g)Confidentiality of information
Any person to which information is provided by the Commissioner of Social Security under this section shall not disclose such information except in any proceedings related to this section. Any civil or criminal penalty which is applicable to an unauthorized disclosure under section 6103 shall apply to any unauthorized disclosure under this section.
(h)Assignments as of October 1, 2007
(1)In general
Subject to the premium obligation set forth in paragraph (3), the Commissioner of Social Security shall—
(A)revoke all assignments to persons other than 1988 agreement operators for purposes of assessing premiums for plan years beginning on and after October 1, 2007; and
(B)make no further assignments to persons other than 1988 agreement operators, except that no individual who becomes an unassigned beneficiary by reason of subparagraph (A) may be assigned to a 1988 agreement operator.
(2)Reassignment upon purchase
This subsection shall not be construed to prohibit the reassignment under subsection (b)(2) of an eligible beneficiary.
(3)Liability of persons during three fiscal years beginning on and after October 1, 2007
In the case of each of the fiscal years beginning on October 1, 2007, 2008, and 2009, each person other than a 1988 agreement operator shall pay to the Combined Fund the following percentage of the amount of annual premiums that such person would otherwise be required to pay under section 9704(a), determined on the basis of assignments in effect without regard to the revocation of assignments under paragraph (1)(A):
(A)For the fiscal year beginning on October 1, 2007, 55 percent.
(B)For the fiscal year beginning on October 1, 2008, 40 percent.
(C)For the fiscal year beginning on October 1, 2009, 15 percent.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
2006—Subsec. (h). Pub. L. 109–432 added subsec. (h). 1994—Subsecs. (a), (c) to (g). Pub. L. 103–296 substituted “Commissioner of Social Security” for “Secretary of Health and Human Services”, “Commissioner” for “Secretary”, and “Commissioner’s” for “Secretary’s”, wherever appearing in text.
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.
Effective Date
of 1994 AmendmentAmendment by Pub. L. 103–296 effective Mar. 31, 1995, see section 110(a) of Pub. L. 103–296, set out as a note under section 401 of Title 42, The Public Health and Welfare.
Reference
Citations & Metadata
Citation
26 U.S.C. § 9706
Title 26, Internal Revenue Code
Last Updated
Sep 22, 2026
Release point: 119-110