§9711 Continued Obligations of Individual Employer Plans

Summary

If a company was the last to sign a coal wage agreement that started in 1978 or later, and on February 1, 1993 a retiree was already getting health benefits from that company's plan, the company must keep giving that retiree and their eligible beneficiaries the same kind of coverage they had on January 1, 1992, as long as the company (and any related business) stays in business. If a worker was eligible for those retiree benefits on February 1, 1993 but was not yet getting them, the same company must start the same coverage when that worker becomes eligible, unless the worker retired after September 30, 1994. Using managed care or cost‑saving rules is allowed if they follow the rules in the law or the company and the United Mine Workers agree. An "eligible beneficiary" means someone who gets benefits because of their relationship to the retiree, or who would have if the retiree had not died. Anyone related to that company is generally equally responsible for providing the health coverage. But if certain security is given to the 1992 UMWA Benefit Plan trustees — a bond, letter of credit, or cash escrow equal to one year of the company’s liability (based on the past three years), kept for 5 years and meant to pay premiums for those beneficiaries — and the common parent of the corporate group agrees to be fully liable, then that common parent (and no one else) is responsible instead. Any leftover security and earnings must be returned when the company’s obligations end or after 5 years. Benefits for other former employees not covered here are set by collective bargaining, lawful unilateral actions, or other law. A "last signatory operator" includes a successor, and a company may transfer its liability to a successor but must notify the plan trustees; the transferor remains a back‑up guarantor of those benefits.