250
section) would be required to be paid by the as-
signed operator or related person, 
then such common parent (and no other person) shall 
be liable for such premium. 
‘‘(2) ASSIGNED
OPERATORS
TO
WHICH
SUB-
SECTION 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)—
‘‘(I) made contributions to the 
1950 UMWA Benefit Plan and the 
1974 UMWA Benefit Plan for employ-
ment during the period covered by the 
1988 agreement; and 
‘‘(II) is not a 1988 agreement op-
erator, 
‘‘(ii) the assigned operator (and all re-
lated persons to the assigned operator) are 
not actively engaged in the production of 
coal as of July 1, 2005, and 
‘‘(iii) the assigned operator was, as of 
July 20, 1992, a member of a controlled 
group of corporations described in subpara-
graph (B).
251
‘‘(B) CONTROLLED
GROUP
OF
CORPORA-
TIONS.—A controlled group of corporations is de-
scribed in this subparagraph if the common par-
ent of such group is a corporation the shares of 
which are publicly traded on a United States ex-
change. 
‘‘(C) COORDINATION WITH REPEAL OF AS-
SIGNMENTS.—A person shall not fail to be treat-
ed as an assigned operator to which this sub-
section applies solely because the person ceases to 
be an assigned operator by reason of section 
9706(h)(1) if the person otherwise meets the re-
quirements of this subsection and is liable for the 
payment of premiums under section 9706(h)(3). 
‘‘(D) CONTROLLED
GROUP.—For purposes 
of this subsection, the term ‘controlled group of 
corporations’ has the meaning given such term 
by section 52(a). 
‘‘(3) REQUIREMENTS.—A payment meets the re-
quirements of this paragraph if—
‘‘(A) the amount of the payment is not less 
than the present value of the total premium li-
ability under this chapter with respect to the 
Combined Fund of the assigned operators or re-
lated persons described in paragraph (1) or their
252
assignees, as determined by the operator’s or re-
lated 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 deter-
mined by such enrolled actuary; 
‘‘(B) such enrolled actuary files with the 
Secretary of Labor a signed actuarial report con-
taining—
‘‘(i) the date of the actuarial valuation 
applicable to the report; and 
‘‘(ii) a statement by the enrolled actu-
ary signing the report that, to the best of 
the actuary’s knowledge, the report is com-
plete 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 
‘‘(C) 90 calendar days have elapsed after 
the report required by subparagraph (B) is filed 
with the Secretary of Labor, and the Secretary 
of Labor has not notified the assigned operator 
in writing that the requirements of this para-
graph have not been satisfied.
253
‘‘(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 para-
graph (3) was made, 
‘‘(B) credit such account with such payment 
(and any earnings thereon), and 
‘‘(C) use all amounts in such account exclu-
sively 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 re-
maining 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).’’. 
(b) INDIVIDUAL EMPLOYER PLANS.—Section 9711(c) 
of the Internal Revenue Code of 1986 (relating to joint and 
several liability) is amended to read as follows: 
‘‘(c) JOINT
AND SEVERAL LIABILITY
OF RELATED 
PERSONS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), each related person of a last signatory op-
254
erator to which subsection (a) or (b) applies shall be 
jointly and severally liable with the last signatory op-
erator for the provision of health care coverage de-
scribed in subsection (a) or (b). 
‘‘(2) LIABILITY
LIMITED
IF
SECURITY
PRO-
VIDED.—If—
‘‘(A) security meeting the requirements of 
paragraph (3) is provided by or on behalf of—
‘‘(i) any last signatory operator which 
is an assigned operator described in section 
9704(j)(2), or 
‘‘(ii) any related person to any last 
signatory operator described in clause (i), 
and 
‘‘(B) the common parent of the controlled 
group of corporations described in section 
9704(j)(2)(B) is jointly and severally liable for 
the provision of health care under this section 
which, but for this paragraph, would be required 
to be provided by the last signatory operator or 
related person, 
then, as of the date the security is provided, such com-
mon parent (and no other person) shall be liable for 
the provision of health care under this section which 
the last signatory operator or related person would