§ 9704. Liability of assigned operators
(a)
Annual premiums
Each assigned operator shall pay to the Combined Fund for each plan year beginning on or after February 1, 1993, an annual premium equal to the sum of the following three premiums—
Any related person with respect to an assigned operator shall be jointly and severally liable for any premium required to be paid by such operator.
(b)
Health benefit premium
For purposes of this chapter—
(1)
In general
The health benefit premium for any plan year for any assigned operator shall be an amount equal to the product of the per beneficiary premium for the plan year multiplied by the number of eligible beneficiaries assigned to such operator under section
9706.
(2)
Per beneficiary premium
The Commissioner of Social Security shall calculate a per beneficiary premium for each plan year beginning on or after February 1, 1993, which is equal to the sum of—
(A)
the amount determined by dividing—
(3)
Adjustments for medicare reductions
If, by reason of a reduction in benefits under title XVIII of the Social Security Act, the level of health benefits under the Combined Fund would be reduced, the trustees of the Combined Fund shall increase the per beneficiary premium for the plan year in which the reduction occurs and each subsequent plan year by the amount necessary to maintain the level of health benefits which would have been provided without such reduction.
(d)
Unassigned beneficiaries premium
(1)
Plan years ending on or before September 30, 2006
For plan years ending on or before September 30, 2006, the unassigned beneficiaries premium for any assigned operator shall be equal to the applicable percentage of the product of the per beneficiary premium for the plan year multiplied by the number of eligible beneficiaries who are not assigned under section
9706 to any person for such plan year.
(2)
Plan years beginning on or after October 1, 2006
(A)
In general
For plan years beginning on or after October 1, 2006, subject to subparagraph (B), there shall be no unassigned beneficiaries premium, and benefit costs with respect to eligible beneficiaries who are not assigned under section
9706 to any person for any such plan year shall be paid from amounts transferred under section
9705
(b).
(B)
Inadequate transfers
If, for any plan year beginning on or after October 1, 2006, the amounts transferred under section
9705
(b) are less than the amounts required to be transferred to the Combined Fund under subsection (h)(2)(A) or (i) of section
402 of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232)),[1] then the unassigned beneficiaries premium for any assigned operator shall be equal to the operator’s applicable percentage of the amount required to be so transferred which was not so transferred.
(e)
Premium accounts; adjustments
(1)
Accounts
The trustees of the Combined Fund shall establish and maintain 3 separate accounts for each of the premiums described in subsections (b), (c), and (d). Such accounts shall be credited with the premiums received and amounts transferred under section
9705
(b) and debited with expenditures allocable to such premiums.
(2)
Allocations
(3)
Shortfalls and surpluses
(A)
In general
Except as provided in subparagraph (B), if, for any plan year, there is a shortfall or surplus in any premium account, the premium for the following plan year for each assigned operator shall be proportionately reduced or increased, whichever is applicable, by the amount of such shortfall or surplus. Amounts credited to an account from amounts transferred under section
9705
(b) shall not be taken into account in determining whether there is a surplus in the account for purposes of this paragraph.
(B)
Exception
Subparagraph (A) shall not apply to any surplus in the health benefit premium account or the unassigned beneficiaries premium account which is attributable to—
(i)
the excess of the premiums credited to such account for a plan year over the benefits (and administrative costs) debited to such account for the plan year, but such excess shall only be available for purposes of the carryover described in section
9703
(b)(2)(C)(ii) (relating to carryovers of premiums not used to provide benefits), or
(f)
Applicable percentage
For purposes of this section—
(1)
In general
The term “applicable percentage” means, with respect to any assigned operator, the percentage determined by dividing the number of eligible beneficiaries assigned under section
9706 to such operator by the total number of eligible beneficiaries assigned under section
9706 to all such operators (determined on the basis of assignments as of October 1, 1993).
(2)
Annual adjustments
In the case of any plan year beginning on or after October 1, 1994, the applicable percentage for any assigned operator shall be redetermined under paragraph (1) by making the following changes to the assignments as of October 1, 1993:
(A)
Such assignments shall be modified to reflect any changes during the period beginning October 1, 1993, and ending on the last day of the preceding plan year pursuant to the appeals process under section
9706
(f).
(g)
Payment of premiums
(1)
In general
The annual premium under subsection (a) for any plan year shall be payable in 12 equal monthly installments, due on the twenty-fifth day of each calendar month in the plan year. In the case of the plan year beginning February 1, 1993, the annual premium under subsection (a) shall be added to such premium for the plan year beginning October 1, 1993.
(h)
Information
The trustees of the Combined Fund shall, not later than 60 days after the enactment date, furnish to the Commissioner of Social Security information as to the benefits and covered beneficiaries under the fund, and such other information as the Secretary [2] may require to compute any premium under this section.
(i)
Transition rules
(1)
1988 agreement operators
(A)
1st year costs
During the plan year of the Combined Fund beginning February 1, 1993, the 1988 agreement operators shall make contributions to the Combined Fund in amounts necessary to pay benefits and administrative costs of the Combined Fund incurred during such year, reduced by the amount transferred to the Combined Fund under section
9705
(a) on February 1, 1993.
(B)
Deficits from merged plans
During the period beginning February 1, 1993, and ending September 30, 1994, the 1988 agreement operators shall make contributions to the Combined Fund as are necessary to pay off the expenses accrued (and remaining unpaid) by the 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan as of February 1, 1993, reduced by the assets of such plans as of such date.
(D)
Premium reductions
(i)
1st year payments
In the case of a 1988 agreement operator making contributions under subparagraph (A), the premium of such operator under subsection (a) shall be reduced by the amount paid under subparagraph (A) by such operator for the plan year beginning February 1, 1993.
(ii)
Deficit payments
In the case a 1988 agreement operator making contributions under subparagraph (B), the premium of such operator under subsection (a) shall be reduced by the amounts which are paid to the Combined Fund by reason of claims arising in connection with the 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan as of February 1, 1993, including claims based on the “evergreen clause” found in the language of the 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan, and which are allocated to such operator under subparagraph (E).
(j)
Prepayment of premium liability
(1)
In general
If—
(A)
a payment meeting the requirements of paragraph (3) is made to the Combined Fund by or on behalf of—
(B)
the common parent of the controlled group of corporations described in paragraph (2)(B) is jointly and severally liable for any premium under this section which (but for this subsection) would be required to be paid by the assigned operator or related person,
then such common parent (and no other person) shall be liable for such premium.
(2)
Assigned operators to which subsection applies
(A)
In general
This subsection shall apply to any assigned operator if—
(i)
the assigned operator (or a related person to the assigned operator)—
(B)
Controlled group of corporations
A controlled group of corporations is described in this subparagraph if the common parent of such group is a corporation the shares of which are publicly traded on a United States exchange.
(C)
Coordination with repeal of assignments
A person shall not fail to be treated as an assigned operator to which this subsection applies solely because the person ceases to be an assigned operator by reason of section
9706
(h)(1) if the person otherwise meets the requirements of this subsection and is liable for the payment of premiums under section
9706
(h)(3).
(3)
Requirements
A payment meets the requirements of this paragraph if—
(A)
the amount of the payment is not less than the present value of the total premium liability under this chapter with respect to the Combined Fund of the assigned operators or related persons described in paragraph (1) or their assignees, as determined by the operator’s or related person’s enrolled actuary (as defined in section
7701
(a)(35)) using actuarial methods and assumptions each of which is reasonable and which are reasonable in the aggregate, as determined by such enrolled actuary;
(B)
such enrolled actuary files with the Secretary of Labor a signed actuarial report containing—
(ii)
a statement by the enrolled actuary signing the report that, to the best of the actuary’s knowledge, the report is complete and accurate and that in the actuary’s opinion the actuarial assumptions used are in the aggregate reasonably related to the experience of the operator and to reasonable expectations; and
(4)
Use of prepayment
The Combined Fund shall—
(A)
establish and maintain an account for each assigned operator or related person by, or on whose behalf, a payment described in paragraph (3) was made,
(C)
use all amounts in such account exclusively to pay premiums that would (but for this subsection) be required to be paid by the assigned operator.
Upon termination of the obligations for the premium liability of any assigned operator or related person for which such account is maintained, all funds remaining in such account (and earnings thereon) shall be refunded to such person as may be designated by the common parent described in paragraph (1)(B).
[1] So in original. Second closing parenthesis probably should not appear.
[2] So in original. Probably should be “Commissioner”.