CARE Act

Summary: Coal Accountability and Retired Employee Act of 2013 or CARE Act - Amends the Surface Mining Control and Reclamation Act of 1977 to transfer specified excess funds derived from coal mine operator-paid reclamation fees to the trustees of the 1974 United Mine Workers of America (UMWA) Pension Plan for use solely to pay pension benefits required under such Plan. Amends the Internal Revenue Code to revise 1992 UMWA Benefit Plan eligibility requirements. Makes eligible for health benefits from the 1992 UMWA Benefit Plan an individual who would be eligible to receive benefits from the 1974 UMWA Benefit Plan (with a specified exception) following a bankruptcy or other insolvency proceeding of a coal mine operator, but who does not receive from that operator or any related person health benefits at least equal to those received under the Multiemployer Health Benefit Plan of the Surface Mining Control and Reclamation Act of 1977. Prescribes a special rule to state 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 the requirements for 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 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 Accountability and Retired 
Employee Act of 2013'' or the ``CARE Act''.

SEC. 2. AMENDMENT OF SURFACE MINING CONTROL AND RECLAMATION ACT OF 
              1977.

    Section 402(i)(2) of the Surface Mining Control and Reclamation Act 
of 1977 (30 U.S.C. 1232(i)(2)) is amended--
            (1) by striking ``Subject to'' and inserting the following:
                    ``(A) In general.--Subject to''; and
            (2) by adding at the end the following:
                    ``(B) Excess amounts.--
                            ``(i) In general.--Subject to paragraph 
                        (3), and after all transfers referred to in 
                        paragraph (1) and subparagraph (A) of this 
                        paragraph have been made, any amounts remaining 
                        after the application of paragraph (3)(A) 
                        (without regard to this subparagraph) shall be 
                        transferred to the trustees of the 1974 UMWA 
                        Pension Plan and used solely to pay pension 
                        benefits required under such plan.
                            ``(ii) 1974 umwa pension plan.--In this 
                        subparagraph, the term `1974 UMWA Pension Plan' 
                        means a pension plan referred to in section 
                        9701(a)(3) of the Internal Revenue Code of 1986 
                        but without regard to whether participation in 
                        such plan is limited to individuals who retired 
                        in 1976 and thereafter.''.

SEC. 3. ELIGIBILITY FOR 1992 UMWA BENEFIT PLAN.

    (a) In General.--Paragraph (2) of section 9712(b) of the Internal 
Revenue Code of 1986 is amended by striking ``or'' at the end of 
subparagraph (A), by adding ``or'' at the end of subparagraph (B), and 
by inserting after subparagraph (B) the following new subparagraph:
                    ``(C) but for this chapter, would be eligible to 
                receive benefits from the 1974 UMWA Benefit Plan (other 
                than an individual described in the last sentence of 
                section 402(h)(2)(C) of the Surface Mining Control and 
                Reclamation Act of 1977) following a proceeding under 
                title 11, United States Code, or other insolvency 
                proceeding relating to the applicable last signatory 
                operator, but who does not receive such coverage at 
                levels at least equal to those described in section 
                402(h)(2)(C) of the Surface Mining Control and 
                Reclamation Act of 1977 from such operator or any 
                related person,''.
    (b) Conforming Amendments.--Paragraph (2) of section 9712(b) of the 
Internal Revenue Code of 1986 is amended--
            (1) by striking ``subparagraph (A) or (B)'' in the matter 
        following subparagraph (C) (as added by this section) and 
        inserting ``subparagraph (A), (B), or (C)'', and
            (2) by inserting ``under subparagraph (A) or (B)'' after 
        ``health benefits coverage'' in the second sentence.

SEC. 4. 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 by striking ``or'' at 
        the end of subparagraph (H), by adding ``or'' at the end of 
        subparagraph (I), and 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 by striking ``or'' at the end of paragraph (19), by 
        striking the period at the end of paragraph (20) and inserting 
        ``; or'', and 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.''.