CARE Act

To protect the health care and pension benefits of our nation’s miners. 1. Short title This Act may be cited as the Coal Accountability and Retired Employee Act of 2013 CARE Act 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) (1) by striking Subject to (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 section 9701(a)(3) . 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 or (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) subparagraph (A), (B), or (C) (2) by inserting under subparagraph (A) or (B) health benefits coverage 4. 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 Paragraph (5) of section 3121(a) of the Internal Revenue Code of 1986 is amended by striking or or (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 ; or (21) any payment made to or for the benefit of an individual under a plan to which section 404(p)(1) applies. .

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.