American Miners Pension Act of 2017
This bill amends the Surface Mining Control and Reclamation Act of 1977 (SMCRA) to transfer certain funds and provide loans to the 1974 United Mine Workers of America (UMWA) Pension Plan in order to provide pension benefits for retired coal miners.
The bill requires the Department of the Treasury to transfer additional funds from the Abandoned Mine Reclamation Fund and the General Fund of the Treasury to the 1974 UMWA Pension Plan to pay pension benefits required under that plan if the amounts available for transfer under SMCRA's $490 million annual limit exceed the amounts required to be transferred for other purposes (including to the UMWA Health Plans). The bill prohibits the plan from making certain changes to benefits during any year in which a transfer is received.
Treasury must make annual loans to the plan equal to the amount certified by the trustees of the plan as necessary to prevent insolvency. The loans may not exceed $600 million per year. The trustees must annually certify that the plan is projected to be solvent and is able to repay the loans under terms specified in the bill.
The bill also establishes additional reporting requirements for the plan.
[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3913 Introduced in House (IH)]
<DOC>
115th CONGRESS
1st Session
H. R. 3913
To amend the Surface Mining Control and Reclamation Act of 1977 to
transfer certain funds to the 1974 United Mine Workers of America
Pension Plan, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 3, 2017
Mr. McKinley (for himself, Mr. Welch, Mr. Brady of Pennsylvania, Mr.
Pocan, Mr. Thompson of Mississippi, Ms. Kaptur, Mr. Ryan of Ohio, Mr.
Yarmuth, Mr. Michael F. Doyle of Pennsylvania, Mr. Scott of Virginia,
Mr. Norcross, Mr. Mooney of West Virginia, Mr. Jenkins of West
Virginia, Mr. Johnson of Ohio, and Mrs. Bustos) introduced the
following bill; which was referred to the Committee on Natural
Resources, and in addition to the Committee on Ways and Means, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To amend the Surface Mining Control and Reclamation Act of 1977 to
transfer certain funds to the 1974 United Mine Workers of America
Pension Plan, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``American Miners Pension Act of
2017''.
SEC. 2. TRANSFERS TO 1974 UMWA PENSION PLAN.
(a) In General.--Subsection (i) of section 402 of the Surface
Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232) is
amended--
(1) by redesignating paragraph (4) as paragraph (5); and
(2) by inserting after paragraph (3) the following:
``(4) Additional amounts.--
``(A) Calculation.--If the dollar limitation
specified in paragraph (3)(A) exceeds the aggregate
amount required to be transferred under paragraphs (1)
and (2) for a fiscal year, the Secretary of the
Treasury shall transfer an additional amount equal to
the difference between such dollar limitation and such
aggregate amount to the trustees of the 1974 UMWA
Pension Plan to pay benefits required under that plan.
``(B) Cessation of transfers.--The transfers
described in subparagraph (A) shall cease as of the
first fiscal year beginning after the first plan year
for which the funded percentage (as defined in section
432(i)(2) of the Internal Revenue Code of 1986) of the
1974 UMWA Pension Plan is at least 100 percent, taking
fully into account all outstanding liabilities for
loans made pursuant to subparagraph (D).
``(C) Prohibition on benefit increases, etc.--
During a fiscal year in which the 1974 UMWA Pension
Plan is receiving transfers under subparagraph (A), no
amendment of such plan which increases the liabilities
of the plan by reason of any increase in benefits, any
change in the accrual of benefits, or any change in the
rate at which benefits become nonforfeitable under the
plan may be adopted unless the amendment is required as
a condition of qualification under part I of subchapter
D of chapter 1 of the Internal Revenue Code of 1986.
``(D) Treatment of transfers for purposes of
withdrawal liability under erisa.--If the 1974 UMWA
Pension Plan is in critical, seriously endangered, or
endangered status (within the meaning of section 432 of
the Internal Revenue Code of 1986 and section 305 of
the Employee Retirement Income Security Act of 1974)
for a plan year beginning in a fiscal year, the amount
of any transfer made under subparagraph (A) for such
fiscal year (and any earnings attributable thereto)
shall be disregarded in determining the unfunded vested
benefits of the 1974 UMWA Pension Plan and the
allocation of such unfunded vested benefits to an
employer for purposes of determining the employer's
withdrawal liability under section 4201 of the Employee
Retirement Income Security Act of 1974.
``(E) Additional loan authority.--
``(i) In general.--In addition to the
amounts transferred under any provision other
than this subparagraph, and without regard to
the limitations described in paragraph (3),
each year beginning with fiscal year 2018 the
Secretary of the Treasury shall transfer to the
1974 UMWA Pension Plan as a loan the amount
certified by the Trustees of the 1974 UMWA
Pension Plan to be necessary to prevent the
insolvency of such plan.
``(ii) Annual cap.--The amount of each
annual loan under clause (i) shall not exceed
$600,000,000.
``(iii) Loan terms.--
``(I) In general.--Each such annual
loan shall bear interest at the rate of
1 percent per annum, and each shall be
treated as a separate loan.
``(II) Repayment.--For the first 10
years of each such loan, only the
interest on such loan shall be
repayable, and payments on the
principal shall be distributed over the
30-year period beginning with the 11th
year of the loan.
``(III) Additional payments.--
Notwithstanding subclauses (I) and
(II), to the extent that the Trustees
of the 1974 UMWA Pension Plan certify
that such plan has surplus assets which
are not needed to pay benefits under
the plan or to ensure the future
solvency of the plan, such surplus
assets shall be applied towards the
repayment of the oldest outstanding
loan made pursuant to this
subparagraph.
``(IV) Maintenance of certain
measures under rehabilitation plan.--
Each loan under this subparagraph shall
specify as a condition of the loan
that, if the 1974 UMWA Pension Plan
emerges from critical status (within
the meaning of section 432 of the
Internal Revenue Code of 1986 and
section 305 of the Employee Retirement
Income Security Act of 1974), the Plan
will continue to meet the requirements
of section 432(b)(3) of such Code and
305(b)(3) of such Act, the measures
adopted pursuant to section
432(e)(3)(A)(ii) of such Code and
section 305(e)(3)(A)(ii) of such Act
will remain in place, and section
412(b)(3) of such Code and section
302(b)(3) of such Act shall continue to
apply to the Plan.
``(iv) Annual certification.--Each year
beginning with fiscal year 2018, the Trustees
of the 1974 UMWA Pension Plan shall certify the
amount required to be loaned pursuant to clause
(i) and the amount of any surplus assets
described in clause (iii)(III). Such
certification shall also include a
certification that--
``(I) such loan amount, in
combination with future amounts
available to the Plan, is projected to
be sufficient to maintain indefinitely
the solvency of the plan (without
regard to any outstanding loan
balance); and
``(II) the Plan is projected to be
able to repay the amount of such loan,
with interest, as required under clause
(iii).
The preceding sentence shall not apply with
respect to any year in which the amount
determined by the Trustees under clause (i) is
$0 and no loans under this subparagraph remain
outstanding.
``(v) Plan insolvency or default.--If the
1974 UMWA Pension Plan becomes insolvent in any
year despite receiving loan amounts under this
subparagraph, or if the Plan is unable to make
any payment on a loan under this subparagraph
when due, employers contributing to the Plan
and employer associations with members
contributing to the Plan shall not be subject
to any new or increased liability, including
any increased fee, expense, contribution,
assessment, or surcharge.
``(vi) Insolvency.--For purposes of this
subparagraph, the term `insolvency' has the
meaning given such term by section 418E(b)(1)
of the Internal Revenue Code of 1986.
``(vii) Initial loan.--The first loan under
this subparagraph shall be made not later than
60 days after the date of enactment of the
American Miners Pension Act of 2017.
``(F) Enhanced annual reporting.--
``(i) In general.--Not later than the 90th
day of each plan year beginning after the date
of enactment of the American Miners Pension Act
of 2017, the trustees of the 1974 UMWA Pension
Plan shall file with the Secretary of the
Treasury or the Secretary's delegate and the
Pension Benefit Guaranty Corporation a report
(including appropriate documentation and
actuarial certifications from the plan actuary,
as required by the Secretary of the Treasury or
the Secretary's delegate) that contains--
``(I) whether the plan is in
endangered or critical status under
section 305 of the Employee Retirement
Income Security Act of 1974 and section
432 of the Internal Revenue Code of
1986 as of the first day of such plan
year;
``(II) the funded percentage (as
defined in section 432(i)(2) of such
Code) as of the first day of such plan
year, and the underlying actuarial
value of assets and liabilities taken
into account in determining such
percentage;
``(III) the market value of the
assets of the plan as of the last day
of the plan year preceding such plan
year;
``(IV) the total value of all
contributions made during the plan year
preceding such plan year;
``(V) the total value of all
benefits paid during the plan year
preceding such plan year;
``(VI) cash flow projections for
such plan year and either the 6 or 10
succeeding plan years, at the election
of the trustees, and the assumptions
relied upon in making such projections;
``(VII) funding standard account
projections for such plan year and the
9 succeeding plan years, and the
assumptions relied upon in making such
projections;
``(VIII) the total value of all
investment gains or losses during the
plan year preceding such plan year;
``(IX) any significant reduction in
the number of active participants
during the plan year preceding such
plan year, and the reason for such
reduction;
``(X) a list of employers that
withdrew from the plan in the plan year
preceding such plan year, and the
resulting reduction in contributions;
``(XI) a list of employers that
paid withdrawal liability to the plan
during the plan year preceding such
plan year and, for each employer, a
total assessment of the withdrawal
liability paid, the annual payment
amount, and the number of years
remaining in the payment schedule with
respect to such withdrawal liability;
``(XII) any material changes to
benefits, accrual rates, or
contribution rates during the plan year
preceding such plan year;
``(XIII) any scheduled benefit
increase or decrease in the plan year
preceding such plan year having a
material effect on liabilities of the
plan;
``(XIV) details regarding any
funding improvement plan or
rehabilitation plan and updates to such
plan;
``(XV) the number of participants
and beneficiaries during the plan year
preceding such plan year who are active
participants, the number of
participants and beneficiaries in pay
status, and the number of terminated
vested participants and beneficiaries;
``(XVI) the information contained
on the most recent annual funding
notice submitted by the plan under
section 101(f) of the Employee
Retirement Income Security Act of 1974;
``(XVII) the information contained
on the most recent Department of Labor
Form 5500 of the plan; and
``(XVIII) copies of the plan
document and amendments, other
retirement benefit or ancillary benefit
plans relating to the plan and
contribution obligations under such
plans, a breakdown of administrative
expenses of the plan, participant
census data and distribution of
benefits, the most recent actuarial
valuation report as of the plan year,
copies of collective bargaining
agreements, and financial reports, and
such other information as the Secretary
of the Treasury or the Secretary's
delegate, in consultation with the
Secretary of Labor and the Director of
the Pension Benefit Guaranty
Corporation, may require.
``(ii) Electronic submission.--The report
required under clause (i) shall be submitted
electronically.
``(iii) Information sharing.--The Secretary
of the Treasury or the Secretary's delegate
shall share the information in the report under
clause (i) with the Secretary of Labor.
``(iv) Penalty.--Any failure to file the
report required under clause (i) on or before
the date described in such clause shall be
treated as a failure to file a report required
to be filed under section 6058(a) of the
Internal Revenue Code of 1986, except that
section 6652(e) of such Code shall be applied
with respect to any such failure by
substituting `$100' for `$25'. The preceding
sentence shall not apply if the Secretary of
the Treasury or the Secretary's delegate
determines that reasonable diligence has been
exercised by the trustees of such plan in
attempting to timely file such report.
``(G) 1974 umwa pension plan defined.--For purposes
of this paragraph, the term `1974 UMWA Pension Plan'
has the meaning given the term in section 9701(a)(3) of
the Internal Revenue Code of 1986, but without regard
to the limitation on participation to individuals who
retired in 1976 and thereafter.''.
(b) Coordination With Taxation of Unrelated Business Income.--
Subparagraph (A) of section 514(c)(6) of the Internal Revenue Code of
1986 is amended--
(1) by striking ``or'' at the end of clause (i);
(2) by striking the period at the end of clause (ii)(II)
and inserting ``, or''; and
(3) by adding at the end the following new clause:
``(iii) indebtedness with respect to the
1974 UMWA Pension Plan (as defined in section
402(i)(4)(G) of the Surface Mining Control and
Reclamation Act of 1977) under a loan made by
the Secretary pursuant to section 402(i)(4)(E)
of the Surface Mining Control and Reclamation
Act of 1977.''.
(c) Effective Date.--The amendments made by this section shall
apply to fiscal years beginning after September 30, 2016.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Natural Resources, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Natural Resources, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Energy and Mineral Resources.
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