Coal Healthcare and Pensions Protection Act of 2013

Summary: Coal Healthcare and Pensions Protection Act of 2013 - Amends the Surface Mining Control and Reclamation Act of 1977 to address potential shortages in the Multiemployer Health Benefit Plan for payment of health care benefits to retired coal miners by expanding the eligible uses of interest transferable to the plan from the Abandoned Mine Reclamation Fund, and supplemental payments from the General Fund of the Treasury. Requires calculation of such amount by taking into account only those beneficiaries who are actually enrolled in the plan as of enactment of this Act, as well as those retirees whose health benefits, payable directly by an employer in the bituminous coal industry under a coal wage agreement as a result of a bankruptcy proceeding commenced in 2012, would be denied or reduced. Requires the Secretary of the Treasury to transfer to the trustees of the 1974 United Mine Workers of America (UMWA) Pension Plan a certain additional amount of funds, to pay pension benefits required under that plan, if the $490 million limitation on certain transfers to the UMWA Combined Benefit Fund and distributions to states and Indian tribes exceeds the aggregate amount required to be transferred to them.  Amends the Internal Revenue Code to prescribe a special rule that employer contributions to an employees' trust or annuity benefit plan providing supplemental benefits solely to participants in a pension plan are neither deductible nor nondeductible as such from the employer's gross income. Subjects such contributions, on the other hand, to deduction as an allowable trade or business expense.  Treats a trust holding the assets of such a pension benefit plan as a tax-exempt organization.  Excludes from taxable wages any payments made to, or on behalf of, an employee or his or her beneficiary under such a plan.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Coal Healthcare and Pensions 
Protection Act of 2013''.

SEC. 2. INCLUSION OF CERTAIN RETIREES IN THE MULTIEMPLOYER HEALTH 
              BENEFIT PLAN.

    Section 402 of the Surface Mining Control and Reclamation Act of 
1977 (30 U.S.C. 1232) is amended--
            (1) in subsection (h)(2)(C)--
                    (A) by striking ``A transfer'' and inserting the 
                following:
                            ``(i) Transfer to the plan.--A transfer'';
                    (B) by redesignating clauses (i) and (ii) as 
                subclauses (I) and (II), respectively, and moving such 
                subclauses 2 ems to the right; and
                    (C) by striking the matter following such subclause 
                (II) (as so redesignated) and inserting the following:
                            ``(ii) Calculation of excess.--Such excess 
                        shall be calculated by taking into account 
                        only--
                                    ``(I) those beneficiaries actually 
                                enrolled in the Plan as of the date of 
                                enactment of the Coal Healthcare and 
                                Pensions Protection Act of 2013, who 
                                are eligible to receive health benefits 
                                under the Plan on the first day of the 
                                calendar year for which the transfer is 
                                made; and
                                    ``(II) those beneficiaries whose 
                                health benefits, defined as those 
                                benefits payable directly by an 
                                employer in the bituminous coal 
                                industry under a coal wage agreement 
                                (defined in section 9701(b)(1) of the 
                                Internal Revenue Code of 1986) as a 
                                result of a bankruptcy proceeding 
                                commenced in 2012, would be denied or 
                                reduced.
                            ``(iii) Eligibility.--An individual 
                        referred to in clause (ii)(II) shall be 
                        considered eligible to receive health benefits 
                        under the Plan.
                            ``(iv) Requirements for transfer.--A 
                        transfer under this subparagraph shall be in an 
                        amount equal to the excess calculated under 
                        clause (i), and reduced by any amount 
                        transferred from a voluntary employees' 
                        beneficiary association established as a result 
                        of such bankruptcy proceeding to the Plan to 
                        pay benefits required under the Plan.
                            ``(v) VEBA transfer.--The administrator of 
                        such voluntary employees' beneficiary 
                        association shall transfer to the Plan any 
                        amounts received as a result of such bankruptcy 
                        proceeding, reduced by an amount for 
                        administrative costs of such association.''; 
                        and
            (2) in subsection (i)--
                    (A) by redesignating paragraph (4) as paragraph 
                (5); and
                    (B) 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, not to 
                exceed 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) 1974 umwa pension plan defined.--In 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.''.

SEC. 3. SPECIAL RULE FOR CERTAIN SUPPLEMENTAL BENEFIT PLANS.

    (a) In General.--Section 404 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(p) Special Rule for Certain Supplemental Benefit Plans.--
            ``(1) In general.--If contributions are paid by an employer 
        under a plan that provides supplemental benefits solely to 
        participants in a plan described in subsection (c) (or a 
        continuation thereof) that provides pension benefits, such 
        contributions shall not be deductible under this section nor be 
        made nondeductible by this section, but the deductibility 
        thereof shall be governed solely by section 162 (relating to 
        trade or business expenses).
            ``(2) Tax treatment of plan.--For purposes of this title, 
        the trust holding the assets of a plan to which paragraph (1) 
        applies shall be treated as an organization exempt from tax 
        under section 501(a).
            ``(3) Special rule for payments other than to or from a 
        trust.--For purposes of this subsection, payments made by an 
        employer to the trustees of a plan described in paragraph (1), 
        and benefits paid by the trustees of such plan, shall be 
        treated as contributions paid to, and benefits paid from, such 
        plan without regard to whether the contributions are paid into, 
        or benefits paid from, the trust holding the assets of such 
        plan.''.
    (b) Exclusion From Wages.--
            (1) Payroll taxes.--Paragraph (5) of section 3121(a) of the 
        Internal Revenue Code of 1986 is amended--
                    (A) by striking ``or'' at the end of subparagraph 
                (H);
                    (B) by adding ``or'' at the end of subparagraph 
                (I); and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(J) under a plan to which section 404(p)(1) 
                applies;''.
            (2) Collection of income tax at source.--Paragraph (12) of 
        section 3401(a) of such Code is amended by adding at the end 
        the following new subparagraph:
                    ``(F) under a plan to which section 404(p)(1) 
                applies, or''.
            (3) Unemployment taxes.--Section 3306(b) of such Code is 
        amended--
                    (A) by striking ``or'' at the end of paragraph 
                (19);
                    (B) by striking the period at the end of paragraph 
                (20) and inserting ``; or''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(21) any payment made to or for the benefit of an 
        individual under a plan to which section 404(p)(1) applies.''.