Coal Healthcare and Pensions Protection Act of 2015

To amend the Surface Mining Control and Reclamation Act of 1977 to transfer certain funds to the Multiemployer Health Benefit Plan and the 1974 United Mine Workers of America Pension Plan. 1. Short title This Act may be cited as the Coal Healthcare and Pensions Protection Act of 2015 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 (1) in subsection (h)(2)(C)— (A) by striking A transfer (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 2015 (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) (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 section 9701(a)(3) . 3. Special rule for certain supplemental benefit plans (a) In general Section 404 (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 Section 3121(a)(5) of such Code is amended— (A) by striking or (B) by adding or (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 Section 3401(a)(12) 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 (B) by striking the period at the end of paragraph (20) and inserting ; or (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. .

Summary: Coal Healthcare and Pensions Protection Act of 2015 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 the 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 Department 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.